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, Klaipeda,
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.
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For more information, please contact:
Lars Christian Berger
CEO
phone: +47 930 94 319
Lcb@balticsea.no
Baltic Sea Properties AS is a Norwegian real estate company focusing on
development and management of real estate in the Baltics. The Company is among
the Baltics' leading real estate investors and developers - and owns a portfolio
of logistics, industrial and retail assets.
Company website: balticsea.no
The information in this announcement constitutes inside information under the EU
Market Abuse Regulation (MAR) and is subject to disclosure requirements under
the Euronext Growth listing rules.
This stock exchange announcement is published by Espen Aas, Investor Relations
of Baltic Sea Properties AS at the time specified in the message.