Pelikan selling German logistics hub to US-based Hillwood Group

PETALING JAYA: Pelikan International Corp Bhd’s (PICB) subsidiary Pelikan Group GmbH (PGG) is disposing of its logistics centre at Falkensee, Germany, to HE4 Falkensee 1 S.à r.l. and HE4 Falkensee 2 S.à r.l.for €81 million (RM399.33 million).

The purchasers are wholly owned subsidiaries of HWE Investor GP S.à r.l, part of the Hillwood Group headquartered in Texas, US.

The Hillwood Group is a developer of industrial, commercial and residential real estate and has its primary operations in the US, with international operations in Britain, Germany and Poland.

PGG entered into a conditional sale and purchase agreement with the purchasers on Wednesday for the exercise. PGG and HE4 Falkensee 2 also entered into a conditional lease agreement for PGG to remain as a tenant of the property for a five years lease period at an annual gross lease fee of €4.15 million.

PICB is expected to realise an estimated one-off gain of RM184.83 million in the exercise. The proceeds of €81 million will be utilised mainly for the repayment of bank borrowings, working capital requirements and internal reorganisation related cost.

The proposed disposal will enable the group to unlock capital resources from being tied up as long term assets and realise the worth of the property at a fair market value whilst strengthening its financial position.

In addition, the proposed lease will ensure that the group’s ongoing operation is not significantly disrupted in the near term and that the group will continue its operations at the existing location.

The proposed disposal and lease are subject to approval of the shareholders of PICB at an EGM to be convened. The board expects the proposed disposal to be completed by last quarter of 2021.

Clickable Image
Clickable Image
Clickable Image