Pandox has entered into an agreement to divest the hotel property Hovmästaren 1 (Scandic Ferrum) in Kiruna for MSEK 286, which is line with latest valuation. The buyer is the state-owned mining company Loussavaara-Kirunavaara AB (LKAB). The date of transfer is planned to 1 December 2018.
The hotel property has 171 rooms with Scandic Hotels AB as tenant and is included in the business segment Property Management. The divestment is made at a yield of 5.7 percent. The property will be reported as asset held for sale in the balance sheet until the date of transfer.
The divestment is a consequence of the on-going move of parts of the city of Kiruna to enable mining of ore beneath the ward of Norrmalm, where the hotel property is located.