Swedish property company Catena is looking to raise SEK 3.05 bn (€269 mln) through a offering of 5,487,282 new shares at a price of SEK 557 (€49) per share.
The subscription price represents a 0.2% discount to the volume-weighted average price over the past ten trading days on Nasdaq Stockholm, a discount of around 3% to the closing price on 28 August, and a premium of 40.7% to the EPRA NRV per share as of 30 June.
The offering was subscribed by a mix of Swedish and international institutional investors, including Warehouses de Pauw (WDP), AMF Småbolagsfond, Clearance Capital Limited, Ranger Global Real Estate Advisors, and funds managed by Columbia Threadneedle Investments.
The funds raised will be used for acquisitions, property development projects, and to fuel Catena's growth strategy. Part of the proceeds will be used to finance Catena's acquisition of a logistics property in Denmark for SEK 5 bn (€442 mln) through a sale-and-leaseback agreement.
Catena has lined up committed financing that will extend the average debt maturity from 3.6 years to approximately 4.6 years, contributing to a reduction in the average credit margin. Catena expects to finalize this financing transaction by the end of Q3 2024.
The share issue is expected to settle on 2 September 2024 when the new shares are also anticipated to start trading on Nasdaq Stockholm.
The share issue will increase the total number of shares and votes in Catena by 5,487,282, resulting in a dilution effect of 9.09%. The share capital will increase by SEK 24.1 mln (€2.1 mln) to SEK 265.6 mln (€23.5 mln).
Carnegie Investment Bank, Swedbank, and Van Lanschot Kempen acted as joint bookrunners for the offering. Born Advokater provided legal advice to Catena, while Baker McKenzie acted as legal counsel to the joint bookrunners.
Catena invested SEK 5.1 bn (€450 mln) in 2024, generating yields of approximately 6%. Since raising capital in March 2024, Catena has deployed SEK 3.0 bn (€265 mln) in acquisitions, of which a significant portion for the purchase of the Örja 1:22 logistics property in Landskrona, southern Sweden.
As of 30 June 2024, Catena had six major ongoing projects with an estimated remaining investment value of SEK 1.1 bn (€97.2 mln). The company plans to invest SEK 0.5 bn (€44.1 mln) in these projects before the end of the year.
