KMC Properties - Update regarding acquisitions and rental contracts

03.01.2022 07:00

KMC Properties ASA, a real estate company focusing on industrial and logistic properties, hereby provides an update regarding property acquisitions and rental contracts, as well as an update on the company's contemplated M&A. With reference to stock exchange announcement on 25 August 2021, whereas KMC Properties ASA, announced that it has received acceptance of a conditional offer for the acquisition of the real estate company Engvej 13 ApS from Limo Labels A/S in Denmark, KMC Properties hereby announces that the parties have concluded to cancel further acquisition talks. As communicated, the offer was conditional, and the parties have not been able to reach a final agreement. Further, KMC Properties have entered an agreement for the acquisition of the real estate company Kampenveien 5A AS, in Fredrikstad, Norway, for a consideration of NOK 52 million, with a gross yield of 7.5 per cent. The seller of the property is BE Form Holding AS, owner of the plastics company Biobe AS. The property comes with a triple-net bare house agreement with Biobe and an initial lease of 12 years. BE Form Holding is wholly owned by BEWI Invest, the largest shareholder of KMC Properties. KMC Properties has also entered a rental agreement with First Seafood AS for its production facility in Kongsvinger, Norway. The agreement is a triple-net bare house agreement, with an initial lease of ten years, and an option for two times extension of five years. The annual CPI adjusted lease rate is set to NOK 2.8 million from 1 January 2022. First Seafood is owned by Insula, KMC Properties' second largest tenant. "We are very pleased to welcome both First Seafood and Biobe as new solid tenants, bringing our occupancy rate to 100 per cent," says Liv Malvik, CEO of KMC Properties. In 2021, KMC Properties completed five acquisitions and announced three greenfield projects, steadily growing its portfolio of logistics- and production properties across the Nordic region. At the third quarter presentation, KMC Properties announced that the company expected further contemplated M&A activities to amount to approximately NOK 370 million by the end of the year. Since then, the company has completed transactions of approximately NOK 180 million with a weighted average gross yield of 7.1 per cent. Currently, KMC Properties has contemplated M&A processes of approximately NOK 220 to 230 million with a weighted average gross yield of 7.7 per cent. For further information, please contact: Liv Malvik, CEO of KMC Properties ASA, tel. +4748003175 About KMC Properties ASA KMC Properties is an Oslo Børs-listed real estate company focusing on industrial- and logistic properties. The company has a diversified portfolio of properties in the Nordics and the Netherlands, as well as an office building in Moscow, Russia. The properties are strategically located and have long lease agreements with solid tenants. KMC Properties has an ambitious strategy to grow the portfolio through further development of existing properties, as well as M&A initiatives. The information is such that KMC Properties ASA is required to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on 3 January 2022.