Bunnik, the Netherlands, 18 November 2016 – Royal BAM Group nv has signed an agreement with VanWonen Vastgoedontwikkeling on the proposed sale of a portfolio of all 47 property development positions in the north east of the Netherlands.
The intended transaction is in line with BAM’s strategy Building the present, creating the future, whereby the business portfolio is being shaped and the property portfolio is being reduced to less than €500 million (30 June 2016: €699 million) by 2020. In this context, BAM is adjusting the property portfolio by converting residential property positions outside the core urban areas into cash and using the proceeds to invest in equity light propositions in the core urban areas.
BAM will remain active in residential and non-residential construction, mechanical and electrical engineering and the development of non-residential property in the north east of the Netherlands.
The intended transaction will reduce BAM’s property portfolio by approximately €44 million and includes an impairment of approximately €10 million for BAM in the fourth quarter of 2016. As there is no external financing on these positions, BAM’s cash proceeds will be around €34 million. It is expected that most of the transaction will be finalised in the first quarter of 2017. BAM’s outlook for the full year 2016 that its adjusted result before tax will be higher than the level of 2015, remains unchanged.