Heimar hf.

Management Reports • Feb 20, 2025

Heimar hf.: Acquisition of Exeter Hotel Properties

Heimar hf.: Acquisition of Exeter Hotel Properties

Heimar hf. ("Heimar" or the "Company") has signed an agreement to acquire all shares in Tryggvagata ehf. The sellers are MF2 hs. and Laxamýri ehf.

Tryggvagata ehf. owns the properties at Tryggvagata 14 and Tryggvagata 10 in downtown Reykjavík, with a total floor area of approximately 5,500 m². These are modern buildings, constructed in 2018, and are located within Heimar’s designated core areas. The acquisition aligns with the Company's strategic priorities.

The transaction involves the purchase of a 106-room, four-star hotel in downtown Reykjavík along with an adjacent office building. Over the past few years, Exeter Hotel has established itself as one of the city's top hotels, situated in a highly sought-after location with a unique view of the harbor. The hotel benefits from an outstanding location, modern design, and high-quality service, ensuring strong occupancy rates and long-term value creation.

The properties are leased, with Exeterhouse ehf., the operator of Exeter Hotel, and Aton Jl. as tenants.

The total enterprise value of Tryggvagata ehf., as per the purchase agreement, amounts to ISK 6,375,000,000. The purchase price will be fully settled in cash and through debt assumption.

Heimar’s management estimates that the acquisition will have an annual EBITDA impact of ISK 454 million following the transaction.

The purchase agreement is subject to various conditions, including the completion of due diligence and approval from the Icelandic Competition Authority.

Further details regarding the transaction will be disclosed at a later stage in accordance with the Company's regulatory disclosure obligations.

LEX acted as Heimar’s advisor in the transaction, while Arion Bank and BBA // Fjeldco served as advisors to the sellers.

For further information, please contact Halldór Benjamín Þorbergsson, CEO of Heimar hf., at +354 821 0001.

Please note that in case of discrepancy in the English and the Icelandic versions, the Icelandic version shall prevail .