The property has an area of more than 25,000 square meters and the total purchase price is DKK 180 million, or approximately EUR 24 million. UB Nordic Property Fund holds 51 percent of the property. The other owner of the property is a Norwegian joint venture between Reitan Group and Oslo Pensjonsforsikring.
The seller of the property is Fiberline A/S, which produces glass and carbon fibre products for the wind industry. The company is a technology pioneer in the manufacture of structures that require very high durability, for example in wind turbines, and today wind power companies are among its most significant customers. The property houses Fiberline's head office, product development and production.
“Fiberline is at a remarkably interesting stage in the company’s life cycle. The company has been in business for forty years, and in recent years the demand outlook for its products has grown strongly, primarily because of growth in renewable energy production. The sale and lease back of the property enables the company's optimisation of its financial position in a growth phase. Fiberline has entered into a long, 15-year lease with us. The rental income calculated for the fund at the acquisition price is approximately 6.5 percent,” says Jarkko Lehtonen, portfolio manager of UB Nordic Property Fund.
“We are really happy with this deal with a professional and financially strong property investor who thinks and acts in the long term. This releases capital to Fiberline so that we can finance the growth in increased capacity for the wind industry,” says Ole Arenfeldt Jensen, CEO of Fiberline A/S.
UB Nordic Property Fund invests in commercial real estate in the Nordic region and is aimed at both private and institutional investors. The fund offers the opportunity to invest in stable cash-generating properties through a well-diversified commercial property portfolio. After the investment executed now, the fund has 46 properties in its portfolio reaching more than EUR 330 million in market value.
UB Nordic Property Fund (AIF) is part of United Bankers' real estate investment portfolio, which includes funds investing in real estate and forest assets, as well as shares in real estate and infrastructure companies.