MAJOR INVESTMENTS BY ACTA'S REAL ESTATE COMPANIES
- Purchase 12 logistics properties in Sweden at 3.5 billion kroner
- Purchase office building in Atlanta, USA, at 1.1 billion kroner
- Purchase four retail parks in Finland at 210 million kroner
- Purchase hotel in Sweden at 135 million kroner
The companies Næringsbygg Holding 3 AS (NBH 3 AS) and Kommersiella Fastigheter Holding 3 AB (KFH 3 AB), owned by Acta's clients, have jointly signed a contract to purchase a logistics and distribution property portfolio consisting of twelve properties in Sweden at a total transaction value of 3.9 billion Swedish kroner. The properties are situated in well established logistics locations whereof the major part is located in the cities Stockholm, Gothenburg and Malmö, and serve mainly as terminal units for the Swedish Postal Service ("Posten"). The seller of the properties is Kuwait Finance House (KFH).
NBH 3 AS and KFH 3 AB have jointly signed a joint venture agreement with Tishman Speyer in order to purchase 80 percent of the office building One Alliance Center in Atlanta's finance district. The property transaction value is 220 million USD, the size of the property totals 51,442 square meters and is managed by Tishman Speyer. The tenants have entered into long term leases, the largest of which are S1 Corporation, Towers Perrin and BBDO Worldwide.
NBH 3 AS and KFH 3 AB have jointly signed a contract to purchase four retail parks in Finland. The portfolio consists of approximately 17,000 square meters and is located in well-established retail areas like Lathi, Hämmeenlinna, Kemi and Masku. The transaction value is 25.5 million euros. The tenants are well-known companies like Keswell, Tokmanni and Indoor Group. This is the first transaction Acta's real estate companies make in Finland.
NBH 3 AS and KFH 3 AB have purchased Centralhotellet Gävle from Næringsbygg Holding 1 AS (NBH 1 AS) and Næringsfastigheter Holding 1 AB (NFH 1 AB) for 150 million Swedish kroner. NBH 1 AS and NFH 1 AB, which were Acta's first commercial real estate investment companies, will now be liquidated. Parallel to this NBH 3 AS and KFH 3 AB are evaluating attractive commercial real estate projects in Sweden. Two independent external valuation companies have valued the property. All details regarding the insurance settlement after the building burnt down in 2005 and the split of land are now known to both parties in the transaction. The owners have made an equity return of around 100 percent in the investment period. Acta and its business partners have reduced the structure margin to 4.5 % in this transaction. The hotel has 186 rooms and is 100 percent operative from January 2007. It has entered into a 20 year lease contract with Scandic Hilton.
- It is important to Acta to find attractive commercial properties which contribute to a diversified portfolio with an attractive risk/return relationship for our clients. These transactions prove again that we have been successful in our strategy, says CEO Simen Mørdre in Acta Holding ASA.
Acta and its business partners are in real estate syndication projects entitled to a structure fee of up to 6% of the transaction value of which approximately half is charged at the time of subscription and half at time of the real estate investment, given that the mandate agreed with the client on total project economics and annual direct yield is met. Parts of the fees will also cover transaction costs.
Acta has syndicated a significant number of real estate projects in Norway and Sweden since 1999. In order to reduce the dependency on single markets and secure the clients access to good projects over time, Acta further diversified the asset sourcing at the end of 2005 and in 2006 by completing real estate projects in Germany, the US, the Baltics and now also in Finland.
Næringsbygg Holding 3 AS (NBH 3 AS) and Kommersiella Fastigheter Holding 3 AB (KFH 3 AB) are portfolios that invest in office buildings, hotels, logistics properties and/or retail properties that are centrally located (population, logistics) and/or with long term leases in the EU/EEA and in the US. The portfolio is organised as a limited holding company that issues shares to investors. The holding company owns the properties, both directly and via other real estate companies. New properties and investors are taken into the portfolio through share issues in the limited holding company. Thus investors will take part in the build up of a broadly diversified portfolio of commercial properties.
Stavanger, 5th February 2007
Contact information: Investment director Geir Inge Solberg, +47 908 78 043
Acta Holding ASA
CFO Christian Tunge
Investment director Geir Inge Solberg