Logistea (LOGI) Business Combination summary

Deal rationale and strategic fit

• Logistea and KMC Properties are merging to form a leading Nordic logistics, warehouse, and industrial real estate company focused on long-term growth, financial stability, and sustainability.

• The combined entity will have a diversified portfolio of 145 properties across eight countries, with a focus on Sweden and Norway, and a WAULT exceeding 10 years.

• The merger leverages complementary strengths, economies of scale, and expands Nordic presence, enhancing access to international capital and operational capabilities.

• The transaction is a strategic milestone, creating one of the largest listed Nordic logistics real estate companies with a strong, diversified shareholder base.

• The merger supports a strategy of operational excellence, long lease terms, high occupancy rates, and sustainability.

Financial terms and conditions

• Logistea will acquire all shares in KMC's property-owning subsidiaries through newly issued Logistea shares, maintaining the same A and B share proportions.

• The transaction values KMC HoldCo at SEK 3,259 million, with Logistea shareholders owning about 51% and KMC shareholders about 49% of the combined company.

• The combined company will have a property value exceeding SEK 13 billion, a market cap of SEK 6.5 billion, and annualised NOI of SEK 899 million.

• KMC has a NOK 900 million senior secured bond maturing in 2026, with a 500 basis point margin over Euribor and a first call in Q1 2025.

• KMC Properties shareholders will receive approximately 0.04 class A shares and 0.51 class B shares in Logistea per KMC Properties share.

Synergies and expected cost savings

• Annual operational cost synergies of at least SEK 14 million are expected, mainly from streamlining central administration, board, and listing fees.

• The larger scale will enable cheaper financing, more tenants, and lower cost per square meter for administration.

• Financing synergies are anticipated but will be quantified post-closing.