Finalization of the real estate transaction
Receive instant alerts when news is published about your stocks. Claim your one week free trial for StreetInsider Premium here.
It was announced on August 11, 2021 that the board of SKEL fjárfestingafélag hf. (“SKEL”) had decided to offer for sale certain properties and sites owned by the Company under a formal sale process organized by Íslandsbanki, with an emphasis on longer term sale and leaseback term or as development opportunities.
Last December 22, an announcement was published on the progress of the transaction, where it was revealed that SKEL had signed an agreement with Kaldalón regarding 13 properties and a memorandum of understanding with F33 ehf. regarding a development project relating to four of the properties; furthermore, it was revealed that negotiations were ongoing on the sale of the properties at Austurströnd 7, 107 Seltjarnarnes and Litlatún in Gardabaer with separate parties, while SKEL had decided to postpone the sale of two properties.
In a notice from SKEL dated March 31, it was announced that following the approval by SKEL’s annual general meeting of the sale of certain real estate to Kaldalón hf., SKEL and Fasteignastýring ehf., a 100% subsidiary of Kaldalón, had signed a purchase agreement agreement for the issue of the properties, subject to some insignificant reservations. The reservations have now all been lifted and the properties transferred to Fasteignastýring ehf. Orkan IS ehf. and Löður ehf., both subsidiaries of SKEL, rented the buildings with the execution of rental contracts for this purpose. The sale price of the properties is unchanged from the price indicated in the previous notice.
Furthermore, SKEL has now further formalized its partnership with F33 ehf. concerning the buildings intended to be developed within the framework of a system similar to that announced on 22 December last. Thus, SKEL and Fasti Holding Company ehf., owner of F33 ehf., created the company Reir ehf., which they hold in equal shares. SKEL will contribute to the new company the properties at Birkimelur 1, 107 Reykjavík, Skógarhlíð 16, 105 Reykjavík, Kleppsvegur, 104 Reykjavík and Reykjavíkurvegur 58, 220 Hafnarfjörður, which in the transaction are valued at ISK 1,700,000,000. Orkan IS ehf. will lease properties from Reir Development ehf. Fasti ehf. will bring to the company its participation in F33 ehf. ; the company’s assets are the Hnoðraholt site in Gardabaer, together with all building rights relating to licensed residential accommodation on the site, together with adjoining site rental rights, for a total value of ISK 1,400,000,000.
In addition, work is underway on the arrangements and sales contracts for the Austurströnd 7, 170 Seltjarnarnes and Litlatún properties in Gardabaer. It is expected that progress will be made on this transaction this summer. If and when this happens, the sale of all the properties mentioned in the notice of last December 22 will be finalized.
For more information, please contact Jón Ásgeir Jóhannesson, Chairman of the Board, ([email protected]).