Cibus, a real estate company, is considering the acquisition of Fortum Estates, an owner of food and grocery properties based in the Benelux.

The portfolio consists of 149 properties with an underlying property value of approximately EUR 508 million.

"We are working on executing an attractive acquisition opportunity in Continental Europe to generate increased cash flow earnings per share for Cibus shareholders. The potential acquisition of Forum Estates is not only a strategically well-matched combination of our real estate portfolios, but also a transaction that contributes to increased cash flow earnings per share from day one. This is an important strategic step in creating a pan-European platform for food and grocery retail real estate, enabling further growth of our portfolio in the Benelux region", Christian Fredrixon, CEO of Cibus, commented.

The current portfolio has rental income of EUR 33.7 million and a profit from property management of EUR 10.9 million. Synergies of EUR 0.5-1 million are expected to be realized. The transaction is expected to be accretive to earnings per share by 3-5% from day one. The leverage is expected to remain in line with Cibus' financial policy.

Cibus will pay with own shares. Forum Estates' shares and 100 percent of the subordinated loans are valued at EUR 219.9 million, of which EUR 115.6 million relates to the shares and EUR 104.3 million corresponds to the nominal value of the subordinated loan. The acquisition needs to be approved at an extraordinary general meeting of Cibus. In connection with the acquisition, Cibus is valued at EUR 15.60 per share. On the stock exchange, the valuation is SEK 167.90 at the time of writing. The valuation is 31 percent higher than the latest net asset value according to EPRA NTA, which was EUR 11.90 per share.

Cibus also states that it continues to see interesting growth opportunities in the Nordic region and in the continental European market in addition to this acquisition.