Oslo, 1st of April 2022, 16:30 CEST.
Baltic Sea Properties AS (“BALT” or “the Company”, and together with the Company’s subsidiaries, “BSP”) has today, on the 1st of April 2022, entered a LOI regarding the acquisition of the neighbourhood shopping center Grandus of apx. 11,400 square meters from Baltic Equity Group UAB et. al. The asset is located in Lithuania’s third largest city, Klaipėda, which has a strategically important location in the Baltics as the region’s only guaranteed ice-free port.
Annual rent income is apx. MEUR 1.02 and the transaction implies a net yield for the center of apx. 8.40 %.
Background for the transaction:
The company considers Grandus to be a neighbourhood shopping center of good quality which will contribute a good and stable cash flow while also diversifying the portfolio. Furthermore, there are synergy effects from the acquisition in that the Company ensures that its subsidiary UAB BNTP will retain its management revenue from the center. At the same time, the overall size of the portfolio increases with this transaction, which is important for achieving economies of scale in line with the Company’s growth strategy.
Details of the transaction:
The transaction is planned concluded by BSP’s acquisition of 100 % of the shares in UAB Prekybos centras Grandus for an acquisition price based on share value of MEUR 11.0. The company currently has a net debt of apx. MEUR 5.35. The transaction is planned settled with basis in the Company’s existing cash balance and the seller provides a seller’s credit of MEUR 4.0 (rente 8.0 % p.a) which is to be settled within 12 months.
The primary shareholder in Baltic Equity Group UAB is the current chairman and primary insider in Baltic Sea Properties, James Andrew Clarke. The transaction will be carried out according to the arm’s-length principle and a third-party valuator has valued the asset higher than the transaction value (apx. MEUR 0.5 higher).
The completion of the transaction will, among other conditions, be subject to the Company completing a satisfactory due diligence of the company and asset, signing of final agreement based on the LOI and standard terms for completion. The Company expects the transaction to be completed early in May 2022.
For more information, please contact:
Lars Christian Berger
phone: +47 930 94 319