Catella helps launch Swedish property companies

Catella has acted as financial adviser and manager in the creation of two new Swedish public companies. One of the two companies, NP3 Fastigheter AB, was listed on Nasdaq Stockholm on Thursday.

In conjunction with the listing a rights issue was conducted of SEK 230 mln (€25 mln), including an overallotment option of SEK 30 mln. 'The project has covered everything from capital raising and acquisition advice to assistance with the listing process, demonstrating the breadth of our expertise,' said Johan Ericsson, head of Catella's Swedish corporate finance operations.

In early 2014, NP3 and Catella together formulated a growth strategy with the goal of listing the company on Nasdaq Stockholm by the end of 2014. The purpose of the listing and offering is to support NP3's continued expansion and development.

NP3 is a cash-flow oriented property company focused on high-yield commercial investment properties in northern Sweden. The company is headed by former Aberdeen CEO Rickard Backlund.

Separately, Catella is advising Torslanda Property Investment, which is acquiring a Volvo research and development centre in Gothenburg in its first investment transaction.

Sörred 8:4 in Torslanda, Gothenburg is being sold by Doughty Hanson & Co Real Estate for an undislosed price.

The property is a centre for Volvo Cars' research and product development activities. Volvo is also the property's principal tenant under a long-term rental lease. It consists of four office buildings with a lettable area of approximately 50,000 m2 and two car park buildings with 2,900 spaces.

In parallel with Torslanda signing the acquisition contract, Catella conducted a capital raising that brought Torslanda almost 150 new shareholders.

'This is a good example of the breadth of Catella's expertise in both property and the capital markets,' Ericsson said. 'The capital was raised in collaboration between Catella's corporate finance, bank and fixed income units, to provide an opportunity for investors that do not normally invest directly in property. We are seeing continued strong demand for property projects, and we will continue to develop well balanced investment cases for this segment.'

Once the acquisition is completed, the intention is also to list Torslanda Property Investment on the First North exchange at Nasdaq Stockholm. Company CEO Caesar Åfors was previously vice president at Swedish listed property company Klövern. Wilfast Förvaltning will be responsible for management of the company and the property.

'Torslanda Property Investment combines a good yield with long-term financial stability. The equity placement was heavily oversubscribed and had to be closed early,' said Martin Malhotra, the project manager at Catella.

Catella's Corporate Finance unit was the lead financial advisor and manager, Nordic Fixed Income was the issuing agent, bookrunner and manager, and Catella's wealth management unit was bookrunner and manager.