Lehto Group Oyj: Lehto and Northern Horizon have signed a frame agreement on construction and sale of health care premises
Lehto Group Plc Stock Exchange release 16 December 2016, 3:30 p.m. EET
Lehto and Northern Horizon have signed a frame agreement on construction and sale of health care premises
Lehto Group Oyj’s subsidiary Rakennusliike Lehto Oy (“Lehto”) and a health care premises fund managed by Northern Horizon (“NHC”) have today signed a frame agreement on construction and sale of health care premises. The aggregate value of the frame agreement is approximately EUR 57 million and it consists out of 16 separate health care premises throughout Finland. The frame agreement includes also an option for building more premises later. NHC will acquire the premises to its Nordic Aged Care fund.
Construction and selling health care premises to funds is the ordinary business of Lehto but according to the frame agreement the premises will be constructed and sold to the fund in a bigger amount by a single deal. Lehto will build the premises and sell them to the fund after completion and when other agreed requirements are met.
The construction of some premises has already started. Mainly the premises will be completed within 2017 but some of them during the first quarter of 2018. The financing of the construction will be organised by Lehto by using both equity and debt.
The premises will be built for elderly care, child care and for other groups with special needs. The users of the premises will be both the communal sector operators and nationwide service providers.
The frame agreement does not have an effect on Lehto’s financial outlook for 2016.
Veli-Pekka Paloranta, CFO, tel. +358 400 944 074, email@example.com