Odd Molly acquires two more logistics properties with an underlying property value of SEK 160 million and plans to carry out directed new issues of just above SEK 57 million

Odd Molly International AB (publ)

Stockholm, August 26, 2020

 

Odd Molly International AB (publ) (“Odd Molly” or the company) has today entered into an agreement to acquire two logistics properties. The property portfolio comprises a lettable area of 23,790 square meters and generates annual rental income of approximately SEK 13.8 million and net operating income of approximately SEK 10.7 million. The underlying property value amounts to approximately SEK 160 million. The transaction is made through two company acquisitions whereas Trenäs Förvaltning AB (“Trenäs”) owns 100 percent of one company, while the other company has two other owners in addition to Trenäs (together the “sellers”). Closing is scheduled for October 22, 2020. In connection with the closing of the transaction, Odd Molly plans to carry out a directed new issue of 3,750,000 new common shares of Series A at a subscription price of SEK 8.00 per share to Trenäs, subject to the approval of the Extraordinary General Meeting of Odd Molly, and a directed cash new issue of a total of 3,400,000 new common shares of Series A at a subscription price of SEK 8.00 per share to a group of international investors led by the insurance company The Phoenix Insurance Company Ltd (together  “Phoenix”) , within the framework of the existing authorization. In total, new issues of just over SEK 57 million are planned.

With the current real estate transaction and the announced acquisition last week, Odd Molly has in a short time taken important steps in the ongoing strategic broadening with the ambition to be a challenger in the logistics market. After completed transactions, the company’s total property portfolio will amount to just under 73,000 square meters and estimated net operating income will increase to SEK 32.5 million, including previously announced new construction in the logistics property in Kristianstad that was acquired at the end of 2019, comments Odd Molly’s Chairman Patrik Tillman.

We are pleased that The Phoenix Insurance Company, a very well-respected institutional investor with extensive experience in the Nordic real estate market will become owners with the strategic ambition to support future growth. Together with the current principal owner and board, a strong team is created for the future, Patrik Tillman continues.

Odd Molly has today entered into an agreement to acquire two logistics properties through the acquisition of 100 percent of the shares in two real estate companies. Underlying property value amount to approximately SEK 160 million. In total, the property portfolio comprises a lettable area of 22,790 square meters, of which 7,490 sqm in Borås and 16,300 square meters in Trollhättan with a total of three tenants. The purchase price for the shares amounts to a total of approximately SEK 60 million. Financing is made through planned new issues amounting to just over SEK 57 million, bank loans and seller financing. The scheduled date of closing is 22 October 2020.

In connection with the acquisition, Odd Molly will carry out directed new issues of a total of 7,150,000 new common shares of Series A at a price of SEK 8.00, which entails a total amount equivalent to SEK 57.2 million before transaction costs.

The directed cash new issue is based on the authorization given to the Board of Directors at the Annual General Meeting on May 7, 2020, to resolve, on one or more occasions during the period leading up to the next Annual General Meeting, on a new issue of common shares of Series A, common shares of Series D and/or Preference shares, with or without deviation from the shareholders’ preferential rights. The number of shares that may be issued under the authorization may correspond to an increase in the share capital of no more than 30 percent, based on the total share capital of the company as of the date of the Annual General Meeting. The Board of Directors has exercised 7,176,778 or 19 percent prior to the today announced transaction of 3,400,000 newly issued common shares of Series A. After the current directed cash new issue, the number of shares will increase by a total of 10,576,778, corresponding to an increase of 28 percent, to a total of 48,345,760 outstanding shares.

The shares are issued to Phoenix group investors based on the subscription commitments received from these parties.

In addition, given the approval of the Extraordinary General Meeting, 3,750,000 new common shares of Series A amounting to SEK 30.0 million will be issued as a directed set-off issue to the current principal owner of the two real estate companies, Trenäs Förvaltning AB. Summons will be sent no later than four weeks before the planned extraordinary general meeting on October 15, 2020.

Odd Molly’s property portfolio is increasing after today’s announced acquisition by 23,790 square meters to just below 73,000 square meters including the new construction in Kristianstad. Annual contracted rental income increases from SEK 23.9 million to SEK 37.7 million and estimated net operating income from SEK 21.7 million to SEK 32.5 million.

Odd Molly International AB has today at 8:00 CET in a separate press release published the interim report for January-June 2020.

This information is information that Odd Molly International AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted, through the agency of the above contact persons, for publication on 26 August 2020 at 09:10 CET.

For further information please contact:

Patrik Tillman, Chairman of the Board Odd Molly International AB (publ) +46 733 50 61020

Johanna Palm, Deputy Managing Director Odd Molly International AB (publ) +46 8 522 285 97