STOCKHOLM, March 28 (Reuters) - Swedish truck and heavy vehicle group Volvo said on Friday it had agreed to sell commercial real estate in a deal expected to boost second quarter operating income by 900 million Swedish crowns ($138.87 million).
Volvo said deal with property firms Hemfosa and Sagax was worth 2 billions crowns on a cash and debt free basis and would reduce net debt by around 1.9 billion crowns.
The deal covers mainly real estate in the Swedish city of Gothenburg and leased to external tenants.
“The Volvo Group has decided to sell the real estate as it has been deemed not strategic for the Volvo Group to continue as landlord and owner,” the company said in a statement.
Volvo said the deal also included other properties in Denmark, Sweden and Finland which will it will continue to rent.
Volvo launched an efficiency drive in 2012 with a target of boosting its operating margin by 3-5 percentage points by the end of 2015. ($1 = 6.4809 Swedish Crowns) (Reporting by Stockholm Newsroom)