Largest property transaction since 2008

The Icelandic property company Landic VI was about to commence restructuring in August 2009. About the same time, Catella began to work as a procurement advisor to the property company Hemfosa Fastigheter AB, which wanted to acquire 44 properties owned by Landic VI. The properties are in Luleå, Skellefteå, Umeå, Sundsvall, Uppsala, Södertälje and Västerås. Telia and Vattenfall are among the largest tenants.

Autumn 2009 was an intensive period for Catella Stockholm as part of the Catella Financial Advisory Group. The project group, lead by Anders Palmgren, contacted Landic and made an offer for the portfolio, which meant that Landic entered a structured sales process in respect of the 44 properties. Landic received a number of bids, and Catella and Hemfosa went on to the next round. More meetings were held in conjunction with the deal, parallel with negotiations with the banks, since financing was a key issue in the acquisition.

Ultimately, Hemfosa Fastigheter AB came out on top and was given the opportunity to acquire the entire property portfolio of Landic VI at a transaction value of some SEK 2.3 billion, making it the largest Swedish property deal since 2008.

"In a deal like this, you buy both an asset portfolio and financing. We were able to contribute property and financing expertise, as well as expertise in restructuring and capital markets, in addition to our excellent market knowledge," says Erik Westerlund.

"In the next stage, we will assist Hemfosa in drawing up business plans. Many people at Catella's property advisory services have been involved in major transaction processes like Landic VI, which are very exciting and gratifying," says Erik.

source : Catella