Nyfosa has signed an agreement with Randviken Fastigheter AB to acquire a property portfolio at a total value of SEK 4.174 billion. The acquisition consists of a portfolio of 79 commercial properties. As part of the purchase price, Nyfosa will issue 10,310,000 new shares.
The properties are mainly located in Karlstad but also in Uppsala, Stockholm, Norrköping and Malmö and mainly consists of offices and warehouses. The properties have an area of approximately 286,487 square meters in total and an annual rental value of approximately MSEK 350. The largest tenants are AFRY AB, Meda AB and Tieto Sweden AB. The average remaining lease term amounts to 3.6 years and the occupancy rate amounts to 90 percent. Financial closing date for the properties is planned for February 29, 2020. Physical access is planned for March 4, 2020. Access is conditional upon the Swedish Competition Authority approving the transaction.
The properties have been assigned a value of SEK 4.2 billion in the transaction and the purchase price is paid partly through a cash payment, partly by Nyfosa issuing 10,310,000 shares. As part of the payment of the purchase price, the newly issued shares have been allocated a total value of approximately MSEK 734, which is based on the volume-weighted average price of the Nyfosa share during an agreed period before the conclusion of the agreement. The shares subscribed by the seller. The issue of the new shares, which will be issued in connection to the closing date, is supported by authorization from the Annual General Meeting on May 9, 2019 and will result in dilution for existing shareholders in Nyfosa with approximately 5.8 percent of capital and votes. The transaction is expected to generate improved earnings and cash flow per share after dilution. Furthermore, the transaction is financed by initiation of new loans and available liquidity.
“This transaction is fully in line with our strategy, where we achieve strong growth while obtaining stable assets in good locations in growth regions. The new properties contribute to Nyfosa increasing its portfolio, primarily in Mälardalen, Greater Malmö and Greater Stockholm, as well as in the office and warehouse categories. We are very pleased with 2019, where we have completed property transactions at a total value of approximately SEK 9.8 billion, of which divestments amount to approximately MSEK 900. This means that we have increased our property portfolio by more than 50 percent since the listing in November 2018.”, says Stina Lindh Hök, COO of Nyfosa.