KMC Properties ASA
KMC Properties ASA
07/02/2021 | Press release | Distributed by Public on 07/02/2021 01:43
KMC Properties signs agreement with Oppdal Spekemat for the construction of a new production facility
KMC Properties ASA, a real estate company focusing on industrial and logistic properties, today announces entering an agreement with Oppdal Spekemat AS to build a new production facility at Oppdal, in Trøndelag county in central Norway. The agreement stipulates that KMC Properties acquires a plot from Oppdal Spekemat and finances and builds the new production facility. Once completed, the facility will be leased to Oppdal Spekemat on a triple-net bare house agreement, with an initial lease term of 15 years, with the option of an extension. The initial lease term is irrevocable. Oppdal Spekemat is a Norwegian producer and seller of traditional cured meats and related products established in 2009. While the company has a solid market position in central Norway, its products, including the brands Grilstad and Spis, are distributed across the country. The company has 33 employees and generated NOK 137 million in sales in 2020. Oppdal Spekemat is owned 60 per cent by Fatland, a Norwegian slaughter- and meat expert with a turnover of close to NOK 5 billion in 2020. 'We're excited to have signed this agreement with a well-established and reputable company such as Oppdal Spekemat. The agreement allows us to continue to diversify KMC Properties' portfolio and it fits well with our strategy to invest in modern facilities with long-term lease agreements,' says Liv Malvik, CEO of KMC Properties. The construction cost is estimated to be approximately NOK 80 million, and the yield-on-cost is set on 7.5 per cent. The agreement is conditional upon financing. KMC Property's portfolio currently consists of 42 properties, primarily in the Nordics, constituting approximately 345,000 sqm in total. For further information, please contact: Liv Malvik, CEO of KMC Properties ASA, tel. +4748003175 About KMC Properties ASA KMC Properties is an Oslo Børs listed real estate company focusing on industrial- and logistic properties. The company has a diversified portfolio of properties in the Nordics and the Netherlands, as well as an office building in Moscow, Russia. The properties are strategically located and have long lease agreements with solid tenants. KMC Properties has an ambitious strategy to grow the portfolio through further development of existing properties, as well as M&A initiatives. The information is such that KMC Properties ASA is required to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 09:45 CEST on 2 July 2021.