PPI acquires Jærveien 33 and a triple net lease with Municipality of Sandnes
Public Property Invest ASA (“PPI”) has acquired the property Jærveien 33 in Sandnes city center for a total property value of NOK 139 million. The property is 4,700 sqm and is newly refurbished. It is 100 % let to the Municipality of Sandnes and houses a local treatment center for addiction and psychiatry. The property is located in the Stavanger/Sandnes region, the 3rd largest region in Norway. Annual rental income is NOK 10.5 million and the lease is triple net with an unexpired lease term of 4.3 years, with a 5 x 2 years extension option.
“PPI has a clear strategy to grow by being a leading consolidator of social infrastructure properties in the Norwegian market. This attractive property makes a very good and value accretive start”, says Ilija Batljan, Interim CEO of PPI.
PPI will roll over the existing debt, and the equity part of the transaction will be settled in new shares in PPI at a share price equivalent to NOK 20.67 per share. The settlement share price is 10.2 % higher than the last closing price for the PPI shares. The total number of new shares to be issued is 1,802,486 and to resolve the issuance of such new shares to the sellers in the transaction, the board of directors of PPI has resolved to increase PPI's share capital with NOK 90,124.30 pursuant to the authorisation to increase PPI's share capital granted by PPI's general meeting on 12 April 2024. The dilution effect is 0.86 % and cash earnings per share is estimated to increase by approximately 2.3 %. The sellers are, as customary in Norwegian syndicates, both companies and private individuals. The transaction will close today, on 14th of October 2024.
Following the registration of the share capital increase pertaining to the new shares in the Norwegian Register of Business Enterprises, PPI's share capital will be NOK 10,519,682.75 divided into 210,393,655 shares, each with a nominal value of NOK 0.05.
For further information, contact: Ilija Batljan, Interim CEO, email: [email protected]
