BEWI sell their real estate portfolio to KMC Properties for $220M

by
editorial staff

BEWI, a leading provider of packaging, components, and insulation solutions, has today entered into an agreement with a wholly owned subsidiary of KMC Properties for the sale of up to 24 properties and one land plot, with a gross asset value of up to approximately $220 million (NOK 2 billion). In connection with the transaction, a long term triple net rental agreements will be entered into for the properties.

“This divestment is in line with our strategy and similar to previous transactions, including the divestments in the Netherlands and Denmark in 2020. The sale of these properties provides us with a significantly strengthened financial flexibility, enabling us to continue pursuing further attractive growth opportunities,” says Christian Bekken, CEO of BEWI, in a press release.

KMC Properties is under the agreement obligated to acquire the Norwegian and Swedish properties comprised by the Property Transaction valued to approximately $98 million (NOK 970 million), including 12 properties and one land plot. Further, KMC Properties has an exclusive right to acquire the remaining part of the portfolio, including properties in Germany, Belgium, Poland, Finland, and Denmark, within twelve months from today. KMC Properties intends to utilize the exclusive right.

In October 2021, BEWI announced that the company had received acceptance from all shareholders for its offer to acquire Jackon Holding. Closing of this acquisition is pending regulatory approvals, hence completion of the Property Transaction is subject to closing.

“Following a thorough and structured process, KMC Properties offered us the best overall solution. This is a complex agreement, covering many properties in different countries, all at strategically important locations to us. We will enter long-term lease contracts, building on years of good relations with KMC Properties, where they have been flexible and agile when it comes to upgrades and extensions of the facilities we operate in,” Bekken concludes.

The Bekken family is the majority shareholder in both companies.

After half an hour of trading, the BEWI stock is up 1.8 percent, while the KMC Properties stock is up 3.9 percent.

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