ABP is a leading independent Norwegian industrial real estate company with real estate assets located in mission critical energy and maritime clusters along the Norwegian coast.
The deal in brief
Property Value: 9,000 MNOK after deduction of deferred tax
Number of properties: 106 properties
Lettable area and land: 264,000 sqm and 1,781,000 sqm land
Economic occupancy rate: 98 %
Average duration of lease contracts: 9 years
Rental income: MNOK 600
Net Operating income: MNOK 560
Location: Bergen 63%, Stavanger 26%, Kristiansund 5%, Hammerfest 4%
Closing: 1 July 2021 subject to customary approval from the Norwegian Competition Authority
ABP was co-founded by Hitec Vision and William W. Wittusen, CEO in ABP, in 2016 to build a property company focused on mission-critical oil and gas related assets, leased on long term contracts to solid counterparties. Since inception, ABP has built a unique business platform on strategically located real estate and infrastructure that underpin leading Norwegian industrial sectors.
"For us, this has been a great journey and a textbook private equity growth investment case. We have enjoyed an excellent cooperation with the ABP team and would like to give them credit for their exceptional execution of the strategy," says Egil Stokka, Senior Partner and Legal Director in Hitec Vision.
While investing in high quality infrastructure and pursuing a focused acquisition strategy, ABP has grown its rental income from zero to nearly NOK 600 million in five years. From its original base in the oil and gas industry, the company is now positioned to capture growth across a diversified range of industries and leverage the opportunities in circular economies, from hydrogen production to offshore wind and land-based aquaculture.
"We see this acquisition as a great opportunity for Balder to expand its presence in Norway, with properties and locations perfectly positioned for current and future industries. ABP is an exciting company, which we are grateful to be able to welcome into the Balder family," says Erik Selin, CEO Balder.
At six locations, from Stavanger in the southwest to Hammerfest above the Arctic circle, the properties of ABP are portals between land and sea industries. The assets are fully embedded within customers' supply chains and provide an essential role in facilitating day to day operations including quays, buildings, land and a range of bespoke fixed equipment and facilities.
"We are very pleased to have Balder, the leading Nordic real estate company, as our new owner, and look forward to realising the ambitions of ABP, our tenants, customers and the communities we engage with," says William W. Wittusen, CEO of ABP.
Pangea Property Partners and Jefferies acted as joint lead advisors to Hitec Vision and ABP in connection with the transaction and BAHR served as legal counsel. Haavind served as legal counsel for Balder.