Hemfosa, Sagax buy 50% of DK Properties

Swedish property companies Sagax and Hemfosa have acquired a 50% interest in DK Properties, the owner of a 33-property portfolio in Sweden. The transaction values DK Properties at SEK 3 bn (EUR 316 mln).

DK Properties said that it is receiving an equity injection of SEK 420 mln from the two new investors, with Sagax partially paying through the issue of 1.7 million new shares. The operation allowed DK Properties to reach a refinancing agreement on its long-term debt, with a new SEK 2.4 bn credit facility being granted, due to mature in 2016.

Privately held DK Properties owns nearly 370,000 m² of commercial space in Sweden, of which 88% consist of industrial and warehouse properties in the Årsta and Västberga districts of Stockholm. The remaining 12% is made up of office properties in central Malmö. The company is controlled by Joachim Kuylenstierna (44%), Lars Dios (28%) and Helen Crichton (28%).

David Mindus, CEO of Sagax said: 'A significant part of DK Properties' assets are almost identical to our own properties. In many cases, they are also right next to each other. We believe there are synergies to achieve with the operation and also that there is great potential in restructuring the portfolio.' The company primarily focuses on warehouse and light industry real estate in Sweden, Germany, Finland and Denmark.

Swedbank Corporate Finance has advised DK Properties and its owner.

Separately, Sagax said that it has acquired two office properties in Uppsala and Staffanstorp in a SEK 230 mln sale and leaseback with their tenant, St Eriks. The assets offer 24,000 m² of office space and were leased back with a 15-year rental agreement. Leimdörfer acted for the seller.