8 June 2012, Sweden, Stockholm
Catella advisor to Tamar European Industrial Fund at divestment of poperties in Borlänge
Catella has advised Tamar European Industrial Fund in the divestment of two properties in the town of Borlänge.
Tamar European Industrial Fund's press release reads:
TAMAR EUROPEAN INDUSTRIAL FUND
MAKES FURTHER SWEDISH DISPOSALS
Tamar European Industrial Fund today announces that it has sold two assets in the town of Borlänge, to a private investment company for a gross price of £11.81 million (132.97 million SEK). As a result of this latest transaction, almost 60% of the Nordic portfolio has been sold.
Both assets are located in the southern industrial zone of Borlänge, around 215 kms north-west of Stockholm:
· The first, Assjan 1, dates from the 1960s and provides 18,320 sqm of warehousing and ancillary offices. It is 69% let (by floor area) to eight tenants, with the three main tenants, accounting for 80% of the rent, having leases expiring between 2013 and 2015.
· The second asset, Banvakten 1, dates from the 1970s and comprises 15,011 sqm of warehousing and ancillary offices. It is 100% leased to two tenants, with Tibnor being the main occupier (85% of the rent). The weighted average lease term remaining is just over five years.
The total sale price reflects a net initial yield of 10.35% and is 4.2% below the last valuation (March 2012).
Rob Brook, Managing Director of Tamar Financial Services Ltd, Investment Manager to TEIF, commented:
"The terms of the deal are reflective of the struggle to attract debt for secondary assets as much as the intrinsic value of the assets. However, given the lease structure, this is a satisfactory transaction for the Fund and is in line with its strategy to exit from the Nordic countries."
Catella advised TEIF on the disposal.
Link to the press release