Summary of the Lease Agreements. The Properties are leased to market leading niche players, which all have had operations in the Properties for several years. The weighted average unexpired lease term amounts to approximately 14.2 years (as of 1 August 2017). Generally, the lease structure in the Portfolio is triple net with the risk for cost overruns allocated on each tenant. The lease agreement in Nybro/Tallen 58 is not triple net, but the tenant carries all utility costs under the lease agreement. Property tax is partly recovered from supplements (or directly covered by the tenants). Overview of Lease Agreements TALLEN 58 TINGSRYD 3:14 TACKJÄRNET2-3 HOLJE 103:9 ÄLGSKYTTEN 13 SKRÄDDAREN 1 SÄVARE 19:12 TOTAL Group Metal PDS PDS Location Nybro Tingsryd Örebro Olofström Jönköping Götene Lidköping Lease term 2026-12-31 2031-11-30 2037-06-14 2031-09-30 2031-09-30 2031-09-30 2031-09-30 Area, m² 20,416 21,124 22,700 18,354 10,896 9,275 1,714 104,479 Estimated income 2017, 10.6 8.8 8.7 7.2 5.6 3.7 0.5 45.0 SEKm Rent / m² 518 415 383 392 511 395 305 431 CPI adjustment 100% CPI 100% CPI 100% CPI 2 % 2 % 2 % 2 % Break option No No No No No No No Notice period 24 months 60 months 42 months 36 months 36 months 36 months 36 months Extension period 60 months 120 months 60 months 60 months 60 months 60 months 60 months VAT Yes Yes Yes Yes Yes Yes Yes Tenant Kährs Orthex Xxxxxxx EBP Prototal AB Prototal Prototal Source: Vendor
Summary of the Lease Agreements. The Properties are leased to well-known and stable counterparties, which all have had operations on the Properties for several years. The weighted average unexpired lease term amounts to approximately 12 years. However, Stadium has a break option in 2023, thus, the weighted average remaining lease term until first break amounts to approximately 10 years as of 1 April 2017. Generally, each tenant pays for utility costs through own subscriptions or supplements. Property tax is paid through supplements in the Norrköping Property and the Nyköping Property. In the Jönköping Property, the property tax is covered by the landlord. The base rents under the Lease Agreements are adjusted with 90% of Swedish CPI on average.
