Kaldalón hf. Completes Strategic Acquisition of Real Estate Assets
Kaldalón hf. (“Kaldalón”) has recently finalized its acquisition of a significant property portfolio held by FÍ fasteignafélag slhf. This acquisition marks a notable milestone for Kaldalón, indicating its growth trajectory in the real estate sector.
Overview of the Property Portfolio
The portfolio encompasses 11 properties, spanning approximately 25,200 square meters, strategically positioned within the Greater Reykjavík area. Among these assets are a diverse range of facilities, including a hotel, an embassy, a primary healthcare center, and multiple office spaces. Noteworthy assets include a 100-room hotel located at Hverfisgata 103 and office premises at Borgartún 25. Other key locations in this acquisition feature an embassy at Laufásvegur 31 and a healthcare facility in Glæsibær, alongside several retail and service units situated in central Reykjavík.
Financial Details of the Acquisition
The total acquisition price has been set at ISK 13,150 million, fully funded through a combination of equity and bonds directed to the sellers. Kaldalón will deliver 228,112,591 new shares to the sellers, complemented by the issuance of bonds totaling ISK 7,232.5 million. These bonds, categorized under a new class labeled KALD 220437, will be traded on Nasdaq Iceland. A yield of 3.93% accompanies this bond issue, positioned at par pricing.
The share price calculated for the newly issued shares is pegged to an average trading price of Kaldalón shares over the preceding 10 days prior to the agreement's acceptance, equating to ISK 25.94 per share. The finalized purchase transaction will occur upon official property transfer.
Strengthening the Shareholder Base
FÍ fasteignafélag operates as a subsidiary under FÍ Eignarhaldsfélag slhf., with significant ownership held by domestic pension funds. Following this acquisition, these pension funds will integrate into Kaldalón's expanding shareholder group and become bondholders of the company.
Conditions for Completion
This acquisition is conditional on several factors, including successful technical inspections of the properties and necessary approvals from the Icelandic Competition Authority. Furthermore, bond terms for class FIF 13 01 will require essential adjustments. Finalizing the purchase agreement awaits validation through a qualified majority vote at FÍ Eignarhaldsfélag's shareholders’ meeting.
Operational Impact
With the acquired properties already generating income, Kaldalón estimates an annual net operating income (NOI) increase of around ISK 870 million. The portfolio exhibits a healthy occupancy rate of 89%, with one asset designated for development. Upon completion of leasing for this development, Kaldalón anticipates an additional NOI increase of approximately ISK 960 million annually. Consequently, Kaldalón's total property portfolio will expand to about 170,000 square meters. The transaction's closure and property handover are projected for the first quarter of 2026.
Comments from Kaldalón’s Leadership
Jón Þór Gunnarsson, CEO of Kaldalón hf., expressed enthusiasm regarding this acquisition:
“We are thrilled to share the acquisition of FÍ fasteignafélag’s property portfolio. These strategic assets, located in Reykjavík, are backed by reputable tenants. Our goal moving forward is to enhance this portfolio’s value, aligning it with Kaldalón’s overarching strategy, and maximising revenue opportunities.”
He further mentioned that upon completing the acquisition, Kaldalón's property portfolio will see significant growth.
Vilhjálmur Pétursson, Chairman of the Board of FÍ Eignarhaldsfélag, also shared insights into this development:
“Reaching this milestone after successfully advancing FÍ fasteignafélag is rewarding. Kaldalón’s offer was the most competitive during the sale process, and we are eager for this promising collaboration that aims to enhance shareholder value.”
Conclusion
Supported by Íslandsbanki Corporate Finance, this acquisition underscores Kaldalón's commitment to expanding its footprint in Reykjavik's competitive real estate market. As the transition unfolds, ongoing commitments to stakeholders will assure strategic alignment and operational excellence going forward.
For further information, please contact:
Jón Þór Gunnarsson, CEO
jon.gunnarsson@kaldalon.is
Frequently Asked Questions
What does the acquisition entail?
The acquisition includes a diverse portfolio of 11 properties in the Greater Reykjavík area, enhancing Kaldalón's operational capacity.
How is the acquisition financed?
It is financed through a combination of equity and bonded debt issued to the sellers.
What are the expected financial benefits?
Kaldalón anticipates an increase of approximately ISK 870 million in annual net operating income post-acquisition.
When is the transaction expected to finalize?
The completion and transfer of properties are expected for the first quarter of 2026.
Who can I contact for more information?
Jón Þór Gunnarsson, the CEO of Kaldalón, is the primary contact for inquiries.
