KMC Properties ASA, a real estate company focusing on industrial and logistic properties, announced today that it has acquired a modern meat processing facility, strategically located at Fagernes near Narvik in Norway, from Kubera AS for a consideration of approximately NOK 100 million.
The property is composed of 10 303 m2 BTA of land and 6 093 m2 BTA of building that was erected in 1998 and substantially upgraded in 2001 and 2003. The meat processing facility is strategically located south of Narvik city center, near the E6 motorway, the railway and port terminal. The property comes with a bare house agreement with the tenant, Kuraas AS, which is on a 6.5-year lease with the option to extend. The total consideration for the property is approximately NOK 100 million, with a yield of 7.8 per cent based on the rent for 2022.
“The Kuraas meat processing facility is a modern plant with a solid tenant, strategically located in Narvik, which is a centre for logistics and transportation. This transaction further diversifies our customer base and strengthens our cash flow. The Kuraas family has been producing quality meat products in Narvik since 1926, and we look forward to being part of their continued journey,” says Liv Malvik, CEO of KMC Properties.
Kuraas is a Norwegian producer and seller of meats, headquartered in Narvik. The company has approximately 110 employees and reported NOK 212 million in revenues in 2020.
The acquisition will be financed through a combination of bank loan and equity. The transaction is expected to be completed in February 2022.
KMC Property's portfolio currently consists of 45 properties, primarily in the Nordics, constituting approximately 370,000 sqm in total.
“We remain committed to continue to grow our portfolio of real estate properties across the Nordic region with both greenfield developments and acquisitions, and we have a tangible pipeline of attractive opportunities before us. KMC Properties is on track to achieve its growth target of NOK 8 billion in portfolio value by the end of 2025, up from NOK 3.7 billion at the end of the third quarter,” Malvik added.
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 15:15 CET on 2 February 2022.