Swedish listed property company Fastighets Balder is taking on a new shareholder as part payment for a SEK 4.1 bn (€433 mln) sale-and-leaseback transaction.
Balder is acquiring all the real estate owned by IA Hedin Property Group, a subsidiary of Swedish automotive business Anders Hedin Invest.
The transaction covers 42 properties and a number of development projects. The portfolio has a total leaseable area of 290,000 m2 and is valued at SEK 4.15 bn.
The real estate is fulled leased to the vendor's main business, car dealer Hedin Bil, on triple net agreements. The average maturity of the leases is just over 11 years and the initial annual rental income amounts to SEK 276 mln. The majority of the property value is located in Stockholm and Gothenburg. Other assets are located in various Swedish cities, including Malmö, Helsingborg, Jönköping, Linköping and Uppsala.
Hedin Bil is a family business founded in 1985. The company has 1,200 employees and provides car sales, service and additional services for various automotive brands including Mercedes-Benz, Nissan, Kia, Ford, Citroen, Opel, Mitsubishi and Jaguar. The business generated SEK 8 bn in sales last year.
In part payment for the transaction, Balder is to issue 4.6 million shares, valued at SEK 1 bn, to Anders Hedin Invest by end-November. This will result in Anders Hedin Invest becoming one of Balder's larger shareholders.
Listed on the large cap section of Nasdaq OMX Stockholm, Balder's portfolio was valued at SEK 77.5 bn at end-June 2016.
