KlaraBo intends to list on Nasdaq Stockholm and carry out a share issue

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, WITHIN OR INTO THE UNITED STATES, AUSTRALIA, HONG KONG, JAPAN, CANADA, NEW ZEELAND, SWITZERLAND, SINGAPORE, SOUTH AFRICA, OR ANY OTHER JURISDICTION IN WHICH THE PUBLICATION, DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL OR REQUIRE REGISTRATION OR ANY OTHER MEASURES. THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER TO ACQUIRE SECURITIES. PLEASE SEE ”IMPORTANT INFORMATION” AT THE END OF THE PRESS RELEASE.

KlaraBo Sverige AB (publ) (”KlaraBo” or the ”Company”), a manager and developer of rental apartments in Sweden, today announces its intention to complete a listing of the Company’s B-shares on Nasdaq Stockholm. In connection with the listing, the Company intends to complete an offering to the general public in Sweden and institutional investors in Sweden and abroad, consisting of newly issued B-shares in KlaraBo of SEK 750 million excluding potential over-allotment option (the “Offering”).

The board and management of the Company consider the listing of the Company’s B-shares a natural step in KlaraBo’s continued development. The main reason for listing on Nasdaq Stockholm is to create optimal conditions for continued growth. A listing will broaden KlaraBo’s ownership base and provides increased access to the capital market. In addition to more efficient capital raising, listing is expected to increase awareness of KlaraBo, which is expected to strengthen the profile of the Company towards stakeholders such as employees, tenants, municipalities and lenders.  

The listing committee of Nasdaq Stockholm has assessed that KlaraBo meets the applicable listing requirements. Nasdaq Stockholm will approve an application for admission to trading of the Company’s B-shares on Nasdaq Stockholm, provided that certain customary conditions are fulfilled, including that the Company submits such application and that the distribution requirement for the Company’s B-shares is fulfilled. The listing and Offering are expected to be completed during the fourth quarter of 2021.

Andreas Morfiadakis, founder and CEO, comments:
”Since 2017 we have experienced a great development in terms of results and growth. During the last year, we have nearly doubled our property portfolio and recently completed our strongest quarter ever. The result proves our timely business concept and focus, and we look forward to finding more interesting acquisitions in the near future and accelerating the refinement of our existing properties. The real estate market remains strong, and the IPO enables us to continue working towards our ambitious growth targets, while at the same time it feels very positive to be able to offer this opportunity to more potential shareholders.”

Lennart Sten, Chairman, comments:
”KlaraBo was founded with the vision of building a real estate company that combines new construction of rental apartments in growth regions with acquisitions and refurbishment of existing residential properties. Our strategy and business model have been successfully implemented in the business and we believe the timing for an IPO is right and a logical next step. The IPO will provide the management team with additional support and the financial resources necessary to continue the growth journey.”

The intended Offering in brief

• The Offering is directed towards the general public in Sweden and institutional investors in Sweden and abroad.
• The Offering is intended to comprise newly issued B shares of SEK 750 million excluding potential over-allotment option.
• Clearance Capital, Länsförsäkringar Fondförvaltning, M2 Asset Management AB and Fonden ODIN Eiendom (the ”Cornerstone Investors”) have, subject to customary conditions, committed to subscribe for shares in the Offering to an aggregate value of SEK 540 million, up to a valuation of SEK 35 per share.
• Assuming the Offering is fully subscribed, excluding potential over-allotment option, this corresponds to a post-money equity value of up to SEK 4,501 million.
• Complete terms and conditions regarding the Offering will be included in the prospectus, which the Company intends to publish in connection with the Offering and listing. The prospectus will, if published, be available on the Company’s website (www.klarabo.se).

About KlaraBo
KlaraBo is a real estate company that owns, builds and actively manages attractive housing in Sweden with the aim of long-term ownership. The Company’s business concept is to manage and acquire residential properties in regions with population growth and a strong labour market, preferably with rent potential through value-enhancing renovations, as well as land for new construction of environmentally certified, cost-effective, in-house developed apartments in wooden construction.

KlaraBo was founded in 2017 in Malmö by the Company’s CEO Andreas Morfiadakis and the member of the board Mats Johansson and Anders Pettersson. The business started with developing its own building concept, KlaraBo-hus, which consists of newly built rental apartments with reasonable rents through cost-efficient and space-saving solutions. The business concept also encompassed acquisitions and management of existing properties, of which the management and board possess extensive experience. Through the Company’s ability to identify and complete acquisitions and projects, KlaraBo’s operations have expanded significantly.

The property portfolio, with a market value of SEK 7,405 million as of 30 September 2021, consists of investment properties with stable rental revenue as well as land and building rights for new construction. As of 30 September, the property portfolio consists of 5,367 rental apartments under management and 1,397 rental apartments in the project portfolio, of which 173 apartments are under construction. To date, KlaraBo has completed three new construction projects of 164 apartments, all of which have been fully let before completion. The properties are located from Trelleborg in the south to Sundsvall in the north and Visby in the east, and are divided into four administrative regions, South, Central, East and North. KlaraBo works with own staff to ensure good local knowledge, efficient property management and proximity to tenants. The project portfolio is mainly located in region South.

As of 30 September 2021, the lettable area of the investment properties totalled approximately 416,000 square metres and the contracted rental revenue amounted to SEK 454 million, of which residential rents accounted for 85 per cent, community service properties accounted for 8 per cent, commercial premises such as office and retail accounted for 4 per cent and other including storage and parking accounted for 3 per cent. Investments in existing properties and development of the project portfolio are important and value-creative components in KlaraBo’s operations and growth. Approximately 3,500 apartments in the property portfolio are estimated to have rent potential through standard-enhancing renovations, which corresponds to around 66 per cent of the property portfolio excluding new construction.

Targets and dividend policy
Operational targets include the following:

• By the end of 2025, KlaraBo aims to own and manage at least 500,000 square metres of housing in Sweden.
• Commence construction of at least 200 apartments per annum during the period 2021 to 2023. Thereafter, the long-term goal is to commence construction of at least 500 apartments per annum. The apartments shall mainly be in-house developed and environmentally certified.
• Through active property management and investments, rent development for existing apartments that are possible to renovate shall substantially exceed the general, annual rent increase.

Financial targets include the following:

• Over an economic cycle, KlaraBo shall achieve an average annual growth in long-term net asset value (EPRA NRV) per share of at least 15 per cent, including any value transfers.
• Over an economic cycle, KlaraBo shall achieve average annual growth in profit from property management per share of at least 12 per cent.

KlaraBo will distribute 50 per cent of taxed profit from property management in the long term. However, dividends in the coming years may not occur as KlaraBo will prioritise growth through new construction, investments in existing properties and acquisitions.

Advisers
ABG Sundal Collier AB is Sole Global Coordinator and Joint Bookrunner. Danske Bank A/S, Danmark, Sverige filial and Handelsbanken Capital Markets are Joint Bookrunners. Advokatfirman Lindahl is legal adviser to the Company and Baker McKenzie Advokatbyrå is legal adviser to Joint Bookrunners.

For more information, please contact:
Andreas Morfiadakis, CEO KlaraBo
andreas.morfiadakis@klarabo.se
+46 76 133 16 61

About KlaraBo
KlaraBo is a real estate company that acquires, builds, owns and manages attractive residential properties. The company was founded in 2017 and operates throughout the country. The strategy is to acquire existing residential properties as well as land for new construction in regions with population growth and a strong labour market. Our newly constructed apartments are developed in-house and space efficient, which contribute to reasonable rents. Both apartments and buildings are designed in collaboration with the municipality to fit local needs. With wood as the main building material, the new construction holds a high environmental standard. KlaraBo is a long-term property owner.

Important information
The release, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions. The recipients of this press release in jurisdictions where this press release has been published or distributed should inform themselves of and follow such restrictions. The recipient of this press release is responsible for using this press release, and the information contained herein, in accordance with applicable rules in each jurisdiction. This press release does not constitute an offer, or a solicitation of any offer, to purchase or subscribe for any securities in KlaraBo in any jurisdiction either from KlaraBo or from someone else.

The securities referred to in this press release have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and accordingly may not be offered or sold in the United States absent an exemption from the registration requirements of the Securities Act. No public offering of shares in KlaraBo will be made in the United States.

The information in this press release may not be announced, published, copied, reproduced or distributed, directly or indirectly, in whole or in part, within or into Australia, Hong Kong, Japan, Canada, New Zealand, Switzerland, Singapore, South Africa, the United States, or any other jurisdiction where such announcement, publication or distribution of this information would not comply with applicable laws and regulations or where such actions are subject to legal restrictions or would require additional registration or other measures than what is required under Swedish law. Actions taken in violation of this instruction may constitute a crime against applicable securities laws and regulations.

This press release is not a prospectus for the purposes of Regulation (EU) 2017/1129 (the “Prospectus Directive”) and has not been approved by any regulatory authority in any jurisdiction. A prospectus will be prepared in connection with the Offering. The prospectus will be scrutinized and approved by the Swedish Financial Supervisory Authority (Sw. Finansinspektionen), which is the national competent authority in Sweden with regard to the Prospectus Directive.

This press release and any materials in relation to the securities described herein are only being distributed to and is only directed at persons in the United Kingdom that (i) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”); (ii) are persons falling within Article 49(2) (a)–(d) (high net worth entities) of the Order; (iii) are outside the United Kingdom; or (iv) are persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as “Relevant Persons”). This press release must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this press release relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. Persons distributing this press release must satisfy themselves that it is lawful to do so.

This press release does not constitute an invitation to warrant, subscribe, or otherwise acquire or transfer any securities in any jurisdiction. This press release does not constitute a recommendation for any investors' decisions regarding the Offering. Each investor or potential investor should conduct a self-examination, analysis and evaluation of the business and the information described in this press release and any publicly available information. The price and value of the securities in the Offering can decrease as well as increase. Achieved results do not provide guidance for future results. Neither the contents of the Company's website, nor any other website accessible through hyperlinks on the Company's website are incorporated into or form part of this press release.

Matters discussed in this press release may constitute forward-looking statements. Such forward-looking statements are all statements that are not historical facts and may be identified by words such as “believe,” “expect,” “anticipate,” “intends,” “estimate,” “will,” “may,” “continue”, “should” and similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that such assumptions were reasonable when made, such assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this press release by such forward-looking statements. The information, opinions and forward-looking statements contained in this press release speak only as at its date and are subject to change without notice. The Company does not undertake any obligation to review, update, confirm or release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release.