KMC Properties and Logistea have entered into an agreement whereby Logistea will combine with KMC Properties by acquiring all the operations in the KMC Properties group through payment in newly issued shares. The combined company will form a leading Nordic logistics, warehouse and light industrial real estate company with a strategic focus on long-term growth, financial stability and sustainability.
The combined property portfolio will consist of a lettable area of c. 1.4m m2, 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 of c. €1.2b and generate net operating income of c. €80m. The combined company will have an occupancy rate of c. 97% with a WAULT exceeding 10 years. Over 90% of the rental agreements have triple net features and close to 100% have full CPI index adjustment. The combined company will have a net LTV below 50%.
Logistea will, after the Transaction, continue its accretive growth strategy through capex projects, greenfield developments and acquisitions. The combined company's management and organization will consist of employees from both Logistea and KMC Properties.
"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 organizations will most likely create added platform value that should increase market pricing beyond net asset value (NAV) to the advantage for all shareholders," said the interim CEO of KMC Properties Stig Waernes.
"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 developing Logistea with my old and new colleagues with the aim to strengthen the offer to our tenants and becoming the natural choice for logistics and industrial companies," said Niklas Zuckerman, CEO of Logistea
Image source - Pexels.
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