Swedish real estate firm Logistea is acquiring its Norwegian counterpart KMC Properties for SEK 3.26 bn (€289 mln) in a deal that will see new Logistea shares issued to KMC shareholders.
After the merger, which is expected to close around 11 July, Logistea will hold a majority stake (51%) in the combined company that will operate as Logistea, while KMC will hold the remaining 49%.
The merged entity will have a portfolio of 1.4 million m2, across 145 properties in Sweden, Norway, Denmark, Finland, the Netherlands, Belgium, Germany, and Poland, with the large majority of the assets located in Sweden and Norway.
Logistea will be valued at over SEK 13 bn (€1.1 bn) and generate a net operating income of SEK 900 mln (€80 mln), implying a net initial yield of 6.9%. The combined company will have an occupancy rate of above 97% with a WAULT exceeding 10 years. Over 90% of the rental agreements have triple net features and close to 100% have full CPI index adjustment. The combined company will have a net loan-to-value below 50%.
Logistea will continue its accretive growth strategy through capex projects, greenfield developments, and acquisitions. The merger will entail operational synergies of at least SEK 14 mln (€1.2 mln).
The executive management team is expected to include Niklas Zuckerman (CEO), Anders Nordvall (deputy CEO and CIO) and Stig Wærnes (acting COO and integration manager). Stig Wærnes is currently the CEO of KMC Properties.
KMC is expected to remain listed on the Oslo Stock Exchange after the merger is completed.
Logistea is active in logistics, warehousing, and light industrial and its portfolio consists of 73 properties in Sweden with total lettable space of 672,000 m2, amounting to a total property value of around SEK 6.2 bn (€550 mln).
KMC Properties focuses on industrial and logistics properties in the Nordics, Germany, Belgium, the Netherlands, and Poland. Its property portfolio amounted to 72 properties with a total lettable space of 715,000 m2, worth approximately NOK 6.9 bn (€605 mln).
