The sale of Karlatornet is being postponed
Completion of the sale of Karlatornet, which was due to happen within days, is being postponed. The reason is the uncertain situation in the global financial market caused by the corona pandemic. Consequently, Serneke will minimalize all activities in the construction of the tallest house in the Nordic region.
It was mid-January of this year that Serneke and Oaktree Capital Management reached a principle agreement to divest 80-percent of Karlatornet, situated on the Karlastaden estate in the Lindholmen area of Gothenburg. Since then, a process of finalizing senior financing and transaction documentation has been set to be completed during the first months of 2020.
However, due to the concern caused by the corona virus in the global financial market, Serneke's intended partner in the project has decided to postpone the closing of final agreements to the future.
- It is obviously a disappointment that we cannot keep the timing for completion of the transaction that we had set up. But we do not control the current situation in the world, and we see how the global turmoil disturbs industry after industry with serious consequences, says Ola Serneke, CEO of Serneke Group.
Because of the postponed closing, Serneke will Serneke will take immediate actions to minimalize all activities in the project.
- We must take responsibility for the entire company in this situation and until we have analyzed the consequences of this and what the future development will look like, we need to take strong actions. This will have direct consequences on resources tied to the project. An analysis of these consequences as well as the impact for the schedule may we return to as soon as possible, says Ola Serneke.
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Interim report January-June 2020
HISTORICALLY STRONG ORDER BACKLOG
Serneke received consent from the bondholders in the written procedure to amend the terms and conditions and extend the maturity of its senior unsecured bonds 2018/2021
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