Shared 17 June, 2024
Logistea AB, listed on Nasdaq Stockholm, and KMC Properties ASA, listed on Oslo Børs, entered on 14 June 2024 into an agreement whereby Logistea will combine with KMC Properties (the “Transaction”) by acquiring all of the operations in the KMC Properties group through payment in newly issued shares. The combined company will as a result of the Transaction form a leading Nordic logistics, warehouse and light industrial real estate company with strategic focus on long-term growth, financial stability and sustainability. The Transaction will also significantly expand and diversify the combined company’s operations, improve its growth prospects and access to capital and enhance its in-house capabilities. The Transaction values both companies based on reported net asset value (NAV) as of 31 March 2024 adjusted for certain minor subsequent events. The relative ownership between shareholders in Logistea and KMC Properties in the combined company, which will operate under the company name Logistea, will be approximately 51 per cent and 49 per cent respectively. The Transaction is, subject to certain conditions, expected to be completed on or about 11 July 2024.
The combined property portfolio will consist of a lettable area of around 1.4 million sqm, split across 145 properties in Sweden, Norway, Denmark, Finland, the Netherlands, Belgium, Germany and Poland, with the large majority of the assets located in Sweden and Norway. The combined company will have a property value exceeding SEK 13 billion and generate net operating income of almost SEK 900 million, implying a net initial yield of 6.9 per cent. The combined company will have an occupancy rate of above 97 per cent with a WAULT exceeding 10 years. Over 90 per cent of the rental agreements have triple net features and close to 100 per cent have full CPI index adjustment. The combined company will, after the Transaction, have a net LTV below 50 per cent.
“We are very pleased to announce this transformational transaction where we combine two attractive and similar companies and property portfolios into one. I am looking forward to develop Logistea with my current and new colleagues with the aim to strengthen the offer to our tenants and becoming the natural choice for logistics and industrial companies”. – Niklas Zuckerman, CEO of Logistea.
“The announced transaction today is a strategic milestone for both Logistea and KMC. The combined company forms a leading Nordic logistics, warehouse and light industrial real estate company with a very strong financial and operational starting point. From this strong foundation we aim to continue work hard and capture future growth prospects and deliver best in class shareholder value”. – Patrik Tilman, Chairman of the board of Logistea.
“We look forward to joining forces with Logistea and believe that the combined company will be able to accelerate accretive growth beyond what two individual companies can achieve. The capabilities of the combined organisations will most likely create added platform value that should increase market pricing beyond net asset value (NAV) to the advantage for all shareholders”. – Interim CEO of KMC Properties Stig Wærnes.
About Logistea
Logistea is a Swedish real estate company in logistics, warehousing and light industrial, with the vision of being the natural partner for companies that demand modern sustainable premises in this segment. Logistea’s shares are listed on Nasdaq Stockholm. As of 31 March 2024, and including the acquisition of a property in Åmål completed after 31 March 2024, its property portfolio amounted to 73 properties with total lettable space of 672 thousand sqm, amounting to a total property value of around SEK 6.2 billion. The property portfolio has a net initial yield of 6.3 per cent, an occupancy rate of around 96 per cent and a WAULT of 8.3 years. The properties are strategically located in Sweden and have long lease agreements with solid tenants.
KMC Properties
KMC Properties is an Oslo Børs-listed real estate company focusing on industrial and logistics properties in the Nordics, Germany, Belgium, the Netherlands and Poland. As of 31 March 2024, and including completed and ongoing acquisitions after 31 March 2024, its property portfolio amounted to 72 properties with total lettable space of 715 thousand sqm, amounting to a total property value of approximately NOK 6.9 billion. The property portfolio has a net initial yield of 7.5 per cent, an occupancy rate of around 98 per cent and a WAULT of 11.5 years. The properties are strategically located and have long lease agreements with solid tenants.
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