Pelikan To Sell Its German Logistics Center

Logistics center owned by Pelikan in Falkensee, Germany

Pelikan International Corporation Berhad (PICB) has seen a significant bump in its share price on the Malaysian stock market over the past several days, noting an 11% increase this past Friday alone. Why is Pelikan’s stock heating up right now? The market activity is tied directly to PICB’s subsidiary, Pelikan Group GmbH, having entered into a conditional sale and purchase agreement on July 7th to sell its logistics center located at Straße der Einheit, Falkensee, Germany. The logistics center is an expansive 135,000 square meter (~1,453,128 square foot) space that includes areas for warehouse storage, offices, and production. The buyers are wholly owned subsidiaries of HWE Investor GP S.à.r.l, part of the Hillwood Group which is based out of Dallas, Texas. The US based Hillwood Group also has operations in the United Kingdom, Germany, and Poland. They are a developer of residential, commercial, and industrial real estate. The property being disposed of came to Pelikan in April 2010 as part of their acquisition of Herlitz AG. At that time, the company acquired a 66% stake in the stationary brand for approximately $60 million (€45 million/RM221.85 million). The building’s current occupants are eCom Logistik GmbH, a logistics services company formed in 2003 as a subsidiary of Herlitz AG. Currently boasting approximately 166 employees it became the wholly owned subsidiary of Pelikan AG in 2015. Fret not if you were worried that Pelikan might be selling off its fine writing division. The property will sell for approximately $96 million (€81 million/RM399.33 million) which is expected to net the company a one-off gain of $44 million (€37 million/RM184.83) based on PICB’s audited consolidated financial statements for fiscal year 2020. Read on to discover all of the details and learn just how Pelikan plans to use the revenue this sale is expected to generate.

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