Götenehus Group has signed an agreement for the acquisition of two commercial properties in Skövde and Trollhättan. Through the acquisitions, the group continues to grow within the property development business area. The purchase price for the property companies is SEK 130 million. The seller is EHF Holding AB and access will take place provisionally on November 8, 2022.

The properties are strategically located in very attractive and central locations in the growth areas of Trollhättan and Skövde. Total leasable area exceeds 24,000 square meters. The tenants are mainly offices, shops and cinemas. In addition, there are approximately 950 parking spaces and the properties also have development opportunities for future residential construction of 20,000 square meters GLA. The underlying property value is SEK 530 million and is based on a 6.1 percent dividend yield. The properties have a letting rate of 95 percent and the average remaining contract length is 3.1 years. The operating net is estimated to amount to just over SEK 30 million on an annual basis.

Together with existing property holdings and the part-owned property company Trähusstaden, the current properties form the basis for continued development of the business area.

"The acquisitions are another step in our investment in real estate development. The deals provide the company with a stable cash flow, increased earnings and also make the group as a whole less sensitive to economic fluctuations. The properties are located in strategically good locations and have a very good tenant structure with many stable and long-term tenants. The fact that the properties also have development opportunities for housing provides positive synergies with our other business areas," says Andreas Gustafsson, president and CEO of Götenehus Group.

The seller is Erik Hemberg, who since 2013 has also been the main owner of Götenehus Group through EHF AB.

"The deal broadens and strengthens Götenehus Group over the business cycle. The properties bring greater business benefit to the Götenehus Group because the company can both build, develop and own the same property in the long term. More management results in smoother and higher income as well as more stable operations for all employees and shareholders," says Erik Hemberg.

The acquisitions take place through company transactions and Götenehus Group takes over existing financing in acquired companies. The preliminary purchase price amounts to SEK 130 million and is mainly financed through a directed new issue to the seller of 30 million shares at a subscription price of SEK 4.00 per share, which corresponds to SEK 120 million which is intended to be offset against a reverse issued by the seller. The remaining purchase price is financed with own cash. The subscription price means a premium of approximately 47 percent compared to the closing price for Götenehus B share on the Nasdaq First North Growth Market on October 10, 2022.

As the transaction takes place between related parties, both the acquisitions and the implementation of the new share issue are conditional on their approval by an extraordinary general meeting of Götenehus Group AB. The board intends to shortly convene the general meeting, which will be conducted by postal voting.

Götenehus Group has engaged Newsec as external advisor for the transactions.