Woolworth may sell some of its properties

Woolworth Properties Group is engaged in negotiations to dispose some of its property, possibly through the “sale and lease back” method, according to the Chairman of the Group, Nicos Shacolas.

Speaking during the Annual General Meeting of shareholders, Shacolas said prospects for the Group are positive with profitability expected to stage a rebound, helped in part by declining interest rates, which will help reduce the cost of financing.

Prospects may also improve for the Lakkos Mikelli Ltd, which owns a huge plot of land in the area known as “Lakkos tou Mikelli” on the outskirts of Nicosia that the Group holds as an investment and which may be separated into plots for development. Woolworth holds a 43% stake in the company.

Shacolas also revealed that his Group has secured EUR 43 mln in financing from a European Bank (reported to be German) to finance the development of the Shacolas Emporium Park, the major property project next to the new Nicosia General Hospital that will also house the IKEA unit. The Emporium is expected to commence operations towards the end of 2006 or early 2007.

During the AGM, newly appointed General Manager of the Group, Marios Panayides made a thorough presentation outlining the property holdings of the group.

Referring to the rental agreements reached with Ermes Department Stores, Shacolas stated that the rental deals give Woolworth the option to increase the rent at par with inflation plus 2 units.

Shareholders approved a Board proposal for 1.5 cent per share dividend and for bonus shares for the disposal of the 1.460.913 shares that had been purchased during the buyback programme in the ratio of 1 for every 65 shares held.