Kaldalón hf. Expands Property Portfolio Through Acquisition
Kaldalón hf. has made a significant move by acquiring the complete property portfolio of FÍ fasteignafélag. This acquisition includes a diverse range of real estate assets that will bolster Kaldalón's position in the market.
Understanding the Property Portfolio
The portfolio encompasses 11 properties totaling approximately 25,200 square meters, strategically located in the Greater Reykjavík area. Among these assets are a hotel, an embassy, a primary healthcare facility, and various office spaces. Noteworthy locations include Hverfisgata 103, which features a 100-room hotel, and Borgartún 25, which includes modern office premises.
Details of the Purchase Offer
Kaldalón’s acquisition was the result of a structured sale process during which the offer was evaluated by FÍ Eignarhaldsfélag slhf. The company's board regarded Kaldalón’s proposal as the most advantageous, emphasizing its suitability in meeting the needs of all stakeholders involved.
Financial Aspects of the Transaction
The entire transaction amounts to ISK 13,150 million, entirely funded through the issuance of equity and bonds. Kaldalón plans to issue 228,112,591 new shares to the sellers, along with bonds worth ISK 7,232.5 million. These bonds, classified under KALD 220437, will be listed on Nasdaq Iceland at a yield of 3.93%. The issuance strategy aims to align the interests of the investors with Kaldalón’s growth trajectory, with shares priced based on recent trading trends.
Anticipating Future Growth
Kaldalón hf. expects this acquisition to enhance its annual net operating income (NOI) substantially, with projections estimating an increase of around ISK 870 million. Additionally, a property classified as a development asset could push that figure even higher, potentially contributing an extra ISK 960 million upon leasing. When combined, this expansion will bring Kaldalón’s total property portfolio to approximately 170,000 square meters.
Voices from the Leadership Team
Jón Þór Gunnarsson, the CEO of Kaldalón hf., expressed his enthusiasm about the acquisition, stating, "We are thrilled to announce the acquisition of the property portfolio of FÍ fasteignafélag. These centrally located properties in Reykjavík have reliable tenants and fit perfectly into our strategic goals. This move not only grows our assets but also our revenue stream by approximately ISK 1,050 million annually. Furthermore, we anticipate a broadening of our shareholder base alongside an increased number of bondholders.”
Perspectives on Collaboration
Vilhjálmur Pétursson, Chairman of the Board at FÍ Eignarhaldsfélag slhf., commented on this significant transition: "This transaction marks an important milestone in the journey of FÍ fasteignafélag. We are excited to collaborate with Kaldalón, leveraging their strength as a publicly traded real estate company to maximize value for shareholders.”
Next Steps and Advisory Support
The completion of the acquisition hinges on several conditions, including regulatory approvals and technical reviews of the properties involved. Once finalized, these developments will mark an important chapter in Kaldalón’s growth and operational strategy. Íslandsbanki Corporate Finance played a crucial advisory role in this transaction, ensuring that each step is navigated smoothly.
For further information, please contact:
Jón Þór Gunnarsson, CEO
jon.gunnarsson@kaldalon.is
Frequently Asked Questions
What is the significance of Kaldalón's acquisition?
The acquisition enhances Kaldalón's property portfolio and is expected to significantly increase annual revenues, boosting shareholder value.
How many properties are included in the portfolio?
The portfolio consists of 11 properties located in the Greater Reykjavík area, covering a total floor area of approximately 25,200 square meters.
What are the financial terms of the acquisition?
The total purchase price of ISK 13,150 million will be funded through equity issuance and bonds, which will include 228 million new shares issued to the sellers.
When is the transaction expected to be completed?
The completion and property transfer is anticipated to occur in the first quarter of 2026, pending regulatory approval and due diligence inspections.
Who are the advisors involved in this transaction?
Íslandsbanki Corporate Finance served as the advisor throughout the sale process of FÍ fasteignafélag, assisting in navigating the acquisition steps.
