Correction: Kaldalón hf.: Acquisition of the Property Portfolio of FÍ fasteignafélag

Kaldalón hf. (“Kaldalón”) and FÍ fasteignafélag slhf. (“FÍ fasteignafélag”) have signed Kaldalón’s purchase offer for all real estate assets owned by FÍ fasteignafélag.

The property portfolio comprises 11 properties with a total floor area of approximately 25,200 square metres. All properties are located in the Greater Reykjavík area and include, among other things, a hotel, an embassy, a primary healthcare facility and office premises. Key assets within the portfolio include Hverfisgata 103, which houses a 100-room hotel; office premises at Borgartún 25; an embassy at Laufásvegur 31; retail and service premises at Bernhöftstorfa in central Reykjavík; a healthcare facility in Glæsibær, as well as other properties.

Kaldalón’s purchase offer was submitted following a structured sale process and was assessed by the board of directors of FÍ Eignarhaldsfélag slhf., the parent company of FÍ fasteignafélag, as the most favourable offer.

The total purchase price amounts to ISK 13,150 million and the transaction is fully financed through the issuance of equity and bonds to the sellers. Settlement of the purchase price will be made through the delivery of 228,112,591 new shares in Kaldalón and the issuance of bonds in the amount of ISK 7,232.5 million to the sellers. The bonds will be issued under a new bond class, KALD 220437, which will be listed on Nasdaq Iceland. The bonds will be issued at a yield of 3.93% and sold at par. The margin in the bond issuance amounts to 120 basis points above the average yield of the Icelandic government bond yield curve over the last 10 trading days. The issue price of the new Kaldalón shares to be delivered is based on the average trading price of Kaldalón shares on the Nasdaq Iceland Main Market over the last 10 trading days prior to acceptance of the offer, amounting to ISK 25.94 per share. The purchase price will be settled upon completion and transfer of the properties.

FÍ fasteignafélag is a subsidiary of FÍ Eignarhaldsfélag slhf., which is majority-owned by a broad group of domestic pension funds. These pension funds will join Kaldalón’s shareholder base and become holders of bonds issued by the Company.

Completion of the transaction is subject to the following conditions:
(i) satisfactory results of technical inspections and due diligence reviews of the properties,
(ii) approval by the Icelandic Competition Authority, and
(iii) necessary amendments to the terms of the bonds in bond class FIF 13 01.
The final purchase agreement is also subject to approval by a qualified majority at a shareholders’ meeting of FÍ Eignarhaldsfélag slhf.

Based on existing lease agreements for the acquired properties, the estimated increase in Kaldalón hf.’s annual net operating income (NOI) as a result of the transaction is approximately ISK 870 million. The income-weighted occupancy rate of the portfolio is 89%. One property is classified as a development asset. Upon full leasing of that property, the estimated annual increase in NOI is expected to amount to approximately ISK 960 million. Following completion of the transaction, Kaldalón hf.’s total property portfolio will amount to approximately 170,000 square metres. Completion of the transaction and transfer of the properties are expected to take place in the first quarter of 2026.

Jón Þór Gunnarsson, CEO of Kaldalón hf., commented:

“We are very pleased to announce the acquisition of the property portfolio of FÍ fasteignafélag. The properties are centrally located in Reykjavík and benefit from strong tenants. Kaldalón will work to streamline the portfolio in line with the Company’s strategy and seek to increase revenues, including through improved utilisation. Today, Kaldalón’s property portfolio is almost fully leased.

Following the transaction, Kaldalón’s property portfolio will increase to approximately 170,000 square metres.

Operating revenues will increase immediately upon completion by approximately ISK 1,050 million on an annualised basis. Kaldalón’s shareholder base will broaden, and the number of bondholders will increase.”

Vilhjálmur Pétursson, Chairman of the Board of FÍ Eignarhaldsfélag slhf., commented:

“Following the successful development of FÍ fasteignafélag, it is gratifying to reach this milestone and move closer to completing the Company’s journey as originally envisaged at this stage. Kaldalón submitted the most favourable offer in the public sale process, and an exciting collaboration now lies ahead with a strong listed real estate company, with the objective of maximising shareholder value.”

Íslandsbanki Corporate Finance acted as advisor in the sale process of FÍ fasteignafélag.

For further information, please contact:
Jón Þór Gunnarsson, CEO
jon.gunnarsson@kaldalon.is