Danish real estate firm Cibus is purchasing a portfolio of 31 grocery stores from ATP Ejendomme for DKK 879 mln (€118 mln).
The acquisition will be completed in two phases. It will be financed partly by equity and partly by a bank loan.
Twenty-two stores with 25,000 m2 of lettable area will transfer on 19 December 2024. The remaining nine stores with 11,200 m2 of lettable area will be transferred as part of a corporate transaction for six of the properties and as separate property transfers for three of the properties.
The acquisition is split into two parts because the nine properties in the second phase are subject to tenant rights of first refusal. If the tenants do not exercise these rights, Cibus will acquire those properties by early February 2025. The entire purchase is being financed with a mix of equity and a bank loan, with a loan-to-value ratio of around 50%.
The 36,200 m2 portfolio is currently leased to major grocery chains REMA 1000 (17 stores), Salling Group/Netto (10 stores), and Coop Denmark (4 stores), generating roughly DKK 55.4 mln (€7.4 mln) annually in rental income, with an average lease remaining for about 6.7 years.
Nearly all (99%) of the portfolio’s rental income comes from grocery stores. The portfolio spans Jutland, Fyn, and Zealand, and features a mix of tenants. While currently 100% occupied, three properties (3,600 m2) are vacant but under lease, generating income for an average of 5.6 more years.
Christian Fredrixon, CEO Cibus Nordic Real Estate, commented: ‘We are pleased to announce that Cibus is continuing our growth journey, and we continue to strengthen our earnings per share by acquiring a very attractive real estate portfolio, this time in Denmark. After this acquisition, we will be one of the leading property owners and landlords within grocery-anchored real estate in Denmark. We continue to actively analyse new potential acquisitions in line with our slogan ‘Converting food into yield.’
