SWEDEN - Nobia has agreed to sell its under-construction kitchen factory property in Jönköping, Sweden, to Hines, a global real estate firm, for SEK 1,350 million (USD 129 million).

Nobia's estimated cash proceeds will be SEK 1,090 million (USD 104.2 million) , with SEK 330 million (USD 31.5 million) withheld until certain conditions are met. The buyer will cover remaining construction costs, resulting in a property book value impairment of approximately SEK 100 million (USD 9.6 million).

The deal involves a "sale and leaseback" structure, with Nobia entering a 20-year rental agreement with the option to extend for another 20 years. State of the art Machinery installation is on track, and production has commenced for kitchen components and cabinets.

The new factory is set to fulfill complete kitchen orders by the end of 2024.

Nobia is one of the largest kitchen companies in Europe, with manufacturing and sales in seven countries: the UK, Denmark, Sweden, Norway, Finland, Austria and the Netherlands.