What: Stockmann announced it will divest its department store in the heart of Helsinki to Keva, the leading pension provider for public sector employees in Finland.

Why it is important: Stockmann will use the proceeds of the divestment to fully repay the over 342 million euros in secured restructuring debt and almost 22 million euros in unsecured restructuring debt.

Stockmann will continue operating in the property under a long-term leaseback agreement signed as part of the sale.

Keva will pay the bulk of the price, over 390 million euros, in connection with the transaction and take the remainder into account in rent in the next couple of years. The transaction is expected to be closed by the end of April.

Stockmann sells iconic department store for EUR 400m to pay off debt