Nordic Land Limited
08 April 2008
Nordic Land Limited
Property valuations at 31 March 2008
Nordic Land Limited ('the Company') is pleased to announce that, at 31 March
2008, the value of its property portfolio had increased by some £8.8 million to
£67.7 million, compared to the value at 30 September 2007 (£58.9 million).
This follows the completion of its formal year-end valuation which was carried
out by DTZ, in accordance with the Appraisal and Valuation Standards of RICS:
Property Valuation as at 31/3/08 Valuation as at 30/9/07 Increase
Helsingborg £ m 48.7 41.7 7.0
SEK m 575 550 25
Lackeraren £ m 13.1 12.0 1.1
SEK m 155 158 (3)
Sicklaon £m 5.9 5.2 0.7
SEK m 70 69 1
Total £m 67.7 58.9 8.8
SEK m 800 777 23
Yield 5.7% 5.7%
Note: SEK: GBP exchange rate 13.2 as at 30 September 2007; 11.8 as at 31 March
2008
Of the total increase in valuations, around £1.9 million* has arisen directly as
a result of the asset management initiatives implemented in the period, which
include:
- an increase in net operating income at Helsingborg through letting
vacant space, increasing mall income and implementing energy cost savings;
- the achievement of 100% occupancy in the vacant office accommodation
in Borlange;
- upward rent indexation of 2.7% for all of the properties in January
2008.
The remainder of the increase in valuations, around £6.9 million*, has resulted
from the strengthening of the Swedish krona ('SEK') relative to sterling.
At the same time, the sterling value of the SEK-denominated debt of the
Company's subsidiaries has increased by £5.3 million*, again as a result of the
strengthening of the Swedish krona.
* Based on unaudited figures
Ian Knight, Managing Director of Nordic Land, commented:
'The increase in property valuations achieved in the six months is particularly
pleasing given recent events in other real estate markets. Although the
appreciation of the Swedish krona has played its part in the increase announced
today, the active management of the portfolio is achieving the positive results
anticipated when the Company was admitted to AIM last year'.
'The fundamentals of the Nordic real estate market remain strong, with good
consumer-spend forecasts, good occupancy rates and lower retail rents relative
to other European markets.'
Year end results update
Further details will be given in the Company's year-end results update, which is
expected to be released in July.
For further information please contact:
Nordic Land Limited
Ian Knight +44 (0) 1892 752005
SP Angel Corporate Finance LLP
John Mackay +44 (0) 20 7647 9642
Matrix Corporate Capital LLP
Stephen Mischler +44 (0) 20 7925 3393
Bankside Consultants
Simon Rothschild/Oliver Winters +44 (0) 20 7367 8888
Property Portfolio
Terminalen 1, Helsingborg
This long-leasehold property was acquired in May 2007 for £39.6 million (net of costs) to reflect an initial yield of
5.7%.
Helsingborg is a major port city in south-west Sweden, opposite Denmark. Terminalen 1 is in central Helsingborg; the
property is in one of the very best office locations and unique for the area's transportation systems.
The building was constructed in 1991 and is the region's central transport terminal. It comprises the terminal area,
which provides ticket sales, waiting halls and a passenger link to the main Sweden to Denmark ferry terminal, a
shopping centre with a number of restaurants above, and offices in a further 5-6 levels above. The total lettable area
is 19,500m2. In total there are some 93 tenants.
Underneath the building is the main west-coast line railway station and the main bus terminal.
The property has a multi-storey roof-top car park (303 spaces) and surface roof-top parking (399 spaces) which benefit
from being directly adjacent to the ferry and train terminals and together provide a strong income stream.
Lackeraren 3, Borlange
This freehold property was acquired in May 2007 for £10.3 million (net of costs) to reflect an initial yield of 5.8%.
Borlange is a major regional town 120 km to the north west of Stockholm with large corporate employers and a strong
local economy.
The property is located next to the regionally-dominant Kupolen Shopping Centre and comprises a retail warehouse park
and two small free-standing office buildings, totalling some 10,000m2, a 327-space surface car park and extensive
servicing areas.
The income is well secured by major national retailers including Willy:s and Rusta.
Sicklaon 117, Nacka, Stockholm
This freehold property was acquired in September 2007 for £4.5 million (net of costs) to reflect an initial yield of
5.9%.
The property is located in the Sickla shopping quarter which, as the main retail location for the Nacka community,
generates some of the highest sales per square metre in Sweden. This area is amongst the most affluent regions in
Sweden, featuring high per capita income and strong population growth.
The location benefits from recent and substantial improvements to local infrastructure. New retail developments and car
parking facilities have recently been completed close by the building, and a new road connection is being planned.
The property comprises 3,400m2 of retail, storage and office accommodation in one building, predominantly let to
national multiple retailers, plus a villa and land for re-development.
This information is provided by RNS
The company news service from the London Stock Exchange