KMC Properties ASA has agreed to acquire a Danish light industrial property for
a total transaction value of NOK 200 million at a gross yield of 7.5 per cent.
The property's tenant is the European leader in development and manufacturing of
roof windows Velux A/S. The transaction is in line with KMC Properties' value
accretive growth strategy, and a reflection of its ability to act on attractive
opportunities in the current real estate market. 

"In our pursuit of becoming the preferred real estate partner for industrial and
logistics companies, we are thrilled to bring Velux into our portfolio of strong
tenants. Velux has demonstrated remarkable growth and stable profitability. With
its commitments to its local communities and the environment, the company
represents an attractive long-term partner for KMC Properties." says Liv Malvik,
CEO of KMC Properties.

In 2023, Velux delivered DKK 21.7 billion revenue with improving operating
margins and has global operations with sales and manufacturing across 37
countries and approximately 11 700 employees. The company has a strong
sustainability commitment reflected through clear targets incorporated in its
strategy, including a target to cut emissions from operations by 100 per cent
and half its value chain emissions by 2030.

The property represents one of 21 Velux production sites and is located in an
industrial cluster in Skjern on the west coast of Denmark. It has a triple net
barehouse lease contract with a 11.5-years WAULT and 100 per cent annual CPI
adjustments. The land area measures 152,533 square meters and holds potential
for development.

The transaction will be financed by approximately NOK 100 million bank debt
provided by Nordea at a fixed interest rate of 1.08 per cent interest margin
plus a five-year CIBOR swap set on expected closing date 3 June 2024. At current
market rates this is equal to a fixed all-in interest rate of 4.12 per cent,
representing an accretive 3.38 percentage point yield gap. As a reference, KMC
Properties had an overall yield gap of 1.01 percentage point at year-end 2023. 

The equity side of the transaction will be covered by parts of the cash inflows
from the NOK 100 million resetting of seven interest rate swap agreements on 22
March 2024. The property is expected to yield a higher internal rate of return
than the seven swaps, at a substantially longer duration. Hence, capital
reallocation represents an accretive way to finance growth, creating long-term
value for the company's shareholders.



For further information, please contact:
Liv Malvik, CEO tel. +4748003175
Kristoffer Holmen, CFO tel. +4792814862
Christian Linge, Interim head of M&A tel. +4746637846 

About KMC Properties ASA
KMC Properties is an Oslo Børs-listed real estate company focusing on industrial
and logistic properties. The company has a diversified portfolio of properties
in the Nordics, Belgium, Germany and the Netherlands. The properties are
strategically located and have long lease agreements with solid tenants.  KMC
Properties has an ambitious strategy to grow the portfolio through further
development of existing properties, as well as M&A initiatives.