Corem has today signed an agreement to divest a portfolio of 30 properties to Onyx Sweden Holdco S.à r.l., a company controlled by Blackstone Group International Partners LLP. The sale is made to concentrate the real estate portfolio geographically and is part of Corem's strategy to increase and develop the portfolio in the company's prioritized locations in the long term.
The properties consist of the majority of warehouses / logistics facilities and are located in 13 locations in Sweden. The objects have a total lettable area of approximately 500,000 square meters, an annual rental value of approximately SEK 309 million and a occupancy rate of 88 percent.
The transaction is made as a company sale with an underlying property value of SEK 4,218m before deduction for deferred tax. Estimated earnings from the transaction amount to approximately SEK 630 million, after deductions for deferred tax, transaction costs and reversal of previously recognized deferred tax. For Q2, an unrealized change in value will be reported. Departure is scheduled for July 5, 2019. The agreement is conditional on review by the Swedish Competition Authority.
The places that Corem leaves through the sale are Tranås, Falun, Gävle, Västerås, Halmstad, Helsingborg, Hudiksvall, Uppsala, Katrineholm and Kumla. The sale contributes to increased focus on Corem's prioritized locations and is in line with Corem's communicated strategy; long-term investments, continued acquisitions and development of properties focused on the company's prioritized locations. After the transaction, the proportion of the real estate portfolio that is located in Region Stockholm amounts to approximately 56 percent, 22 percent in Region West and 14 percent in Region Syd. Based on reported figures as of March 31, 2019, sales also mean that Corem's adjusted equity / assets ratio will increase to 53 per cent from 39 per cent, while the loan-to-value ratio will decrease to 35 per cent compared to 54 per cent.
"Through the sale we streamline our property portfolio geographically. The strategy we worked from since the company started is proving successful when we can now divest a well-composed portfolio to a new logistics player. Corem gets a clearer focus in its property portfolio, in line with previously communicated strategy, and at the same time creates very good financial opportunities for future interesting investments," says Eva Landén, CEO of Corem.