Sale and leaseback of the industrial properties

VGD Corporate Finance had been mandated by the engineering company EMERGE, a.s. as an exclusive financial adviser in the selling process of the industrial properties with the total area up to 33.000 m2. The transaction value was approximately CZK 150 Mio and the buyer was an investment fund from the WMS Group.

Co-owner and the chairman of the board Filip Takáč said: “The transaction will help our group with the further technological expansion as it will increase our potential growth. The buyer (WMS) has become the holder of the properties and strategic partner on the behalf of the long-term lease contract.”

Manager of the transaction from VGD CF, Michal Černý, said: “Through a structured and thorough selection process we managed to reach a very interesting yield for the client alongside with the combination of long-term lease conditions.”

The Transaction comprised of the sale and leaseback of two manufacturing facilities with a total land area of 33.000 m2 and production premises of 13.000 m2, registered in the cadastral area of Bakov nad Jizerou.

EMERGE, a.s. was established in 1991 with the aim to make a production of the metal parts for Automotive Industry. Their main customers include ŠKODA AUTO a.s. The company achieved a turnover CZK 1,3 bn. in 2017 and employs over 800 employees, where more than half of them are listed as disabled.

WMS Investiční společnost a.s. bought the premises to its portfolio via their internal fund called REALITA. This fund is active on the Czech market form 2009 and invests in the leasable properties. The effectiveness of the fund is 50,95% since its foundation.

The Transaction was finalized by the end of 2017.