Ratos: Ratos sells Serena Properties

 Press RELEASE June 30, 2017

Ratos has signed an agreement to sell all the shares in the subsidiary, the Serena Properties AB,

a real estate company with a portfolio of 21 commercial volymhandelsfastigheter in Finland

, to Fastighets AB Balder for 206 MILLION (approximately sek 2 billion) (enterprise value). Ratos will receive approximately eur 50 MILLION (about 490 Million) for its share of the shares. Sales

provides a exitvinst of about sek 90 M, at an average annual rate of return (IRR) of approximately 30% and a Money Multiple of 1.5 x.

Serena Properties AB (Serena) owns and operates 21 retail properties spread across 14 medium-sized cities in Finland. The properties are located in established venues with attractive tenants for the most part made up of food and lågprishandel.

During Ratos less than two years as the owner of Serena, the company has developed into a focused handelsfastighetsbolag. Serena has as the property owner was able to reduce its vacancy rate, established good relationships with nyckelhyresgäster, started the development of several trading venues as well as pure real estate portfolio through the sale of real estate located outside of the strategy. Serena’s turnover and EBITA for the period amounted to Sek 172 million, respectively, 129 Million, per rolling 12 months as of march 31, 2017.

– Serena’s managing director Marc von Melen has, together with his management team in a short time succeeded with a number of value creation initiatives Ratos identified in connection with our investment. The ongoing operation of the properties have been streamlined and most of the venues have hyresgästmixen improved, and all leases have been extended. To offer competitive and sustainable venues has been a priority for Serena. When the real estate market has continued to perform strongly and Ratos with the current cost of capital has been difficult to expand Serena’s portfolio, it is natural for us to now sell the company. Balder provides a score that reflects the potential of the portfolio in the future and we are convinced that Serena with Balder, Warm and Redito that future owners have good prospects to be developed well, ” says Johan Rydmark, Investment Director at Ratos.

The selling price for 100% of the shares (equity value) amounts to eur 90 MILLION (approximately 0.9 billion usd) and corporate value (enterprise value) to the 206 MILLION. Ratos’s share of equity value is approximately eur 50 MILLION (about 490 M) and exitvinsten amounts to a total of approximately Sek 90 million, calculated on the book value of Serena as of march 31, 2017. The annual average return (IRR) amounts to approximately 30%. Ratos’s holding in Serena Properties is 56%. The sale is conditional on approval from the relevant authorities and is expected to be completed during the third quarter of 2017.

For further information:

Johan Rydmark, Investment Director, Ratos, 08-700 17 00

Helene Gustafsson, investor relations and press officer, Ratos, 08-700 17 98

Financial calendar from Ratos:

Interim report January-June 2017 August 17, 2017

Interim report January-september 2017 november 14, 2017

Ratos is an investment company that owns and develops unlisted medium-sized companies in the Nordic region. The goal is to as an active owner contributing to the long-term and sustainable enterprise development in the companies and to implement value-creating transactions. Ratos portfolio consists of 17 nordic medium-sized companies in which the largest sectors in the turnover are Construction, Industry and Consumer goods/Trade. Ratos is listed on Nasdaq Stockholm and has a total of approximately 14 200 employees.

Press release

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