Catena AB and Danish company H5 Properties A/S have signed an agreement for Catena to acquire five properties in Denmark and one in Sweden (Borås) at an underlying property value of approximately SEK 815 million after deduction for deferred taxes. The net operating surplus for all of the properties is estimated at about SEK 45 million. The properties will be acquired through corporate acquisitions, with the purchase consideration for the shares provisionally amounting to about SEK 457 million after deductions for deferred taxes.
Part of the purchase consideration will be paid by Catena issuing a promissory note for SEK 200 million which, according to the agreement, the vendor must submit as payment for newly issued shares in Catena. The issue, which is partly being conducted to finance the acquisition, is directed towards the vendor and will be subscribed and paid for through the completion of the acquisition on Catena gaining possession of the properties. A new share issue may be approved by Catena’s Board of Directors, supported by the authorization granted to the Board of Directors at the 2020 Annual General Meeting.
“Catena perceives considerable potential in Denmark, and, with this acquisition, we will establish an additional position in the Scandinavian logistics property market. This is an attractive property portfolio with stable tenants and efficient facilities in favourable locations that match Catena’s existing network of logistics properties well,” says Jörgen Eriksson, CEO of Catena.
In Denmark, the Bavnevej 13 property in Vamdrup is being acquired, with a lettable area of 26,752 m2, the Kokbjerg 15 property in Kolding, with a lettable area of 15,327 m2, the Kokmose 2-6 property in Kolding, with a lettable area of 10,686 m2, the Hammerholmen 47-49 property in Hvidovre, with a lettable area of 16,489 m2, and the Norddigesvej 3 property in Risskov, with a lettable area of 4,497 m2. The Swedish property in the portfolio is the Hevea 3 property in Borås, which has a lettable area of 19,519 m2.
The acquisition encompasses a total lettable area of approximately 93,270 m2, a rental value of SEK 49 million and an average remaining lease duration of ten years. The largest tenants in the Danish properties are the international freight forwarder NTG Nordic Transport Group A/S and the logistics company H. Daugard A/S, which combined account for 79 percent of the lettable area. Fashion company Gina Tricot is the tenant in the Swedish property. Development rights for a total of about 40,000 m2 are also associated with the properties, offering opportunities for future expansion.
Catena is expected to gain possession of the properties on 1 March 2021.