KMC Properties - Signing of conditional agreements for development of salmon slaughterhouse facility for Slakteriet Holding

02.06.2022 06:30

With reference to stock exchange announcement of 23 August 2021, regarding a letter of intent for the development of a salmon slaughterhouse facility for Slakteriet Holding ("Slakteriet"), and further an update in the announcement of 9 February 2022, KMC Properties today announces that the company has entered a conditional share purchase agreement (SPA) and a conditional lease agreement with Slakteriet. The agreements include the acquisition of the land plot and preliminary works for approximately NOK 41.3 million. Further, the parties have entered a triple-net bare house lease agreement for the slaughterhouse facility with an initial term of 20 years, with an option for the tenant to extend for 4 times 5 years. The agreements are subject to customary closing conditions and financing. The development project is progressing according to plan and is expected to be completed during the first half of 2024. However, the estimated total investment has been updated from NOK 620 million to NOK 682 million, still with a yield-on-cost of 6.75 per cent. Established in 1989, Slakteriet is one of Norway's biggest fish slaughter companies, with major facilities in Florø and Brekke. The company is growing steadily and has a solid financial position, posting NOK 196 million in revenues and NOK 15 million in EBITDA in 2021. Slaughter volumes have gained approximately 28 per cent in the past five years. KMC Property's portfolio currently consists of 46 properties (excluding the property in Russia), primarily in the Nordics, constituting approximately 377,000 sqm in total. 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.