Northern Logistic Property ASA (NLP) has signed an agreement with Kungsleden to sell five properties with lettable area of approximately 109,000 m².
The properties are sold based on a market value of SEK 525 mln. (approx. €50.9 mln.), which is in line with the external valuations and the accounted value of the properties. The transaction will be carried through as a sale of shares in subsidiaries, whereas the purchase price for the shares will be adjusted for various balance sheet items, including interest bearing liabilities and deferred tax. Closing date for the transaction is November 2, 2009.
The properties sold are the same purchased from Kungsleden in July 2008 with combined industrial- retail- office and logistics lettable area. The investment was financed by a seller note from Kungsleden in the amount of SEK 420 mln. The outstanding loan amount as of today is SEK 386 mln. and the loan matures in 2011.
The sale strengthens NLP's financial position and facilitates the company's strategy. After the sale NLP will focus on development of the existing properties in Sweden.
CEO Per Gunnar Rymer says in a commentary: "The sale releases considerable cash amount, strengthens our focus and position to pursue the target on further development of own properties. It removes the need for refinancing of the loan in 2011. Further the sale removes the uncertainty with respect to investment liabilities in some of the sold properties. As a whole we consider the sale as value generative for NLP in the present situation and the company will after the sale have no intention to sell additional properties in Sweden."