European furniture fabrics supplier Gabriel Holding A/S signed a letter of intent to sell its real estate unit Gabriel Ejendomme A/S for 150 million Danish kroner.

Pension group PenSam will acquire the Danish property developer in a deal that is expected to be finalized in the 2019-2020 financial year, with completion slated for around April 1, 2020. Gabriel Holding said the sale price does not include the interest-bearing debt and deferred tax of Gabriel Ejendomme.

The deal is subject to satisfactory due diligence and amendment of the local development plan to permit residence construction on the property.

As part of the sale agreement, operating company Gabriel A/S entered into a non-terminable 15-year lease with Gabriel Ejendomme for an approximately 6,900-square-meter commercial area, with the right to sublease the area.

Gabriel Holding started the process of selling Gabriel Ejendomme in March 2016, according to an Oct. 12 announcement.

As of Oct. 11, US$1 was equivalent to 6.46 Danish kroner.