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Munich, Germany, 28 April 2014 - CANCOM SE buys back the rented business property located in Jettingen-Scheppach, Germany. The building with its attached logistics center was established in 2001 and was extended with an extension in 2007 due to the Group's growth. In the same financial year CANCOM sold the property as part of a sale-and-lease-back agreement for EUR 9.5 million. A rental agreement for the entire property was signed at the same time, to run until 2021.
With contract recorded by the notary of 27 March 2014, CANCOM purchases the property located in Jettingen-Scheppach and currently used by the company, for EUR 8.7 million plus incidentals with retroactive effect from 01 March 2014. Proportional financing costs of CANCOM's recently issued bond were EUR 80 thousand offset the rent savings of EUR 800. Taking into account the rent savings until 2021 and the costs and expenses associated with the purchase (depreciation) the Group's year-on-year earnings increase before interest and taxes (EBIT) amounts to EUR 530 thousand.
At Jettingen-Scheppach location there are CANCOM's Group central services for example logistics, purchase department, human resources, internal IT department and accounting as well as the direct sales with about 300 employees of the Group's total staff of more than 2,600 people. Furthermore, the location has an strategically important role, as there is the Group's center of the e-commerce business. For CANCOM, the purchase of the property provides certainty for planning and investment for logistics and back office mentioned.
Besides the business property, CANCOM purchases the developed, unbuilt-on neighbouring land. With the purchase for stock CANCOM saves various options for future use.