Montea shall acquire 47.9 ha plot in Tiel (NL) via sale-and-rent back formula
18-09-2018

In November 2017 Montea announced the signing of a letter of intent with De Kellen BV concerning the acquisition of a 47.9 hectare plot on the De Kellen industrial estate in Tiel. De Kellen B.V. and Montea Nederland N.V. recently signed a purchase agreement in which the conditions and modalities for the acquisition of the aforementioned site were agreed.

The plot can be reached easily from the A15. It is located on the Amsterdam-Rhine Canal & De Waal and his its own quay facilities. The seller will rent back the site for a minimal fixed period of 30 years.

The plot is composed of 2 parts, both of which are leased for the long term:

  • 38.7 hectares are leased for a fixed period of 30 years to Recycling Kombinatie REKO B.V. (De Kellen B.V. and Recycling Kombinatie REKO B.V. are associated companies). Recycling Kombinatie REKO B.V. has planned to make substantial investments for the renovation and extension of the quay and the surfacing of the plot to make it suitable for the storage and treatment of residual waste
  • 9.2 hectares for a fixed period of 11.75 years to Struyk Verwo Infra B.V. If Struyk Verwo Infra B.V. were to leave at the end of the lease, Recycling Kombinatie REKO B.V. undertakes to extend it under the same conditions for the residual term until the end of the 30-year period of the 38.7 hectares that Recycling Kombinatie REKO B.V. already rents.  

After the expiry of the 30-year rental period, Recycling Kombinatie REKO B.V. will deliver the plot ready for construction.

In view of the broad intended use and size of the site, Montea will be able to develop an ambitious masterplan for the surroundings, after the expiry of the aforementioned leases.

This transaction represents a total investment value of € 58.0 million (in line with the investment value determined by the real estate expert), € 4,676,650 of which shall be paid after the site has been archaeologically cleared at the risk and expense of the seller according to the selection decision to be concluded by the seller with the municipality of Tiel. The transaction will generate an initial gross yield of 6% (rental income of € 3,480,000/year).  

Montea will finance this transaction in part by means of a contribution in kind of the claim of De Kellen B.V. on Montea Nederland N.V. to pay the purchase price in the capital of Montea Comm.VA within the limits of the authorized capital. This transaction will lead to a strengthening of equity of Montea Comm. VA with € 41,240,000, which corresponds to the investment value of € 58,000,000 exclusive of transfer fees, the content of the rental guarantee still to be stipulated, the content of the selling price for archaeological costs (which amount to € 12,330,370) and a balance in cash to pay of € 4,429,630.

Montea Comm.VA and De Kellen B.V. signed a contribution agreement under suspensive conditions that is likely to be realized in the near future. The contribution in kind will be compensated by the issue of new Montea shares at an issue price per share equal to the average closing price of the Montea share on the Euronext Brussels market during the 30 stock market days prior to the date of the contribution. The new shares will share in the profit as of 1 January 2018.

The contribution will be carried out once the notarial deed of delivery is concluded (at or around 20 September 2018) and as soon as the Dutch notary has been able to verify that the transfer has been carried out without entries in Dutch public registers which were not known at the time that the deed of delivery was concluded.

Hylcke Okkinga, Manager, The Netherlands:This transaction raises the share of the Netherlands in the overall portfolio from 30% to 35%. It moreover improves the average term of the leases in the total portfolio from 7.4 years to 8.5 years, reduces the debt ratio from 52.7% to 51.1% while the positive impact on the EPRA result per share amounts to € 0.04.”