With reference to stock exchange announcement of 23 August 2021, regarding KMC Properties ASA entering a letter of intent with (LOI) with Slakteriet Holding AS to build a new salmon slaughterhouse facility at Florø, on the Norwegian western coast, the parties have now signed a process agreement, confirming the initial plans for expected completion during the first half of 2024. Through the process agreement the parties have agreed upon a triple-net bare house agreement which shall be entered into if and when the parties reach a final decision to complete the project. The agreed lease agreement has an initial lease term of 20 years, with the option of a 20-year extension.
Following the announced entering of the LOI in August 2021, a legal and technical due diligence have been performed. The investment is estimated at approximately NOK 620 million, with a yield-on-cost of approximately 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 191 million in revenues and NOK 34 million in EBITDA in 2020. Slaughter volumes have gained 28 per cent in the past five years.
KMC Property’s portfolio currently consists of more than 45 assets, primarily in the Nordics, constituting approximately 375.000 sqm in total.
For more information about the project, see stock exchange announcement of 23 August 2021.
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.