In a significant deal within the Belgian industrial real estate sector, Carter Jonas and its Belgian real estate partner, Ceusters have assisted in the sale of the shares of SAPPI Lanaken N.V., including all land, buildings, and equipment of its Lanaken Mill in Limburg, Belgium, to UTB Waalwijk B.V. (UTB), a privately owned Dutch company specialising in industrial property conversions.

UTB will purchase all the shares in SAPPI Lanaken N.V. and its assets for a total of €50m [£42m]. The transaction is unconditional and expected to complete in October 2024.

The Lanaken Mill site comprises approximately 80 acres (32 hectares) of land with direct access to the Albert Canal on part of the site. It includes a collection of office buildings and industrial structures that amount to approximately 1.2 million sq ft (120,000 sq m) of space. The site also includes an advanced water treatment facility and power infrastructure.

This strategic move signifies an important step for SAPPI, a leading global provider of everyday materials made from wood fibre-based renewable resources, headquartered in South Africa, as it seeks to streamline its operations. Following an announcement in November 2023, SAPPI initiated a comprehensive consultation process aimed at realigning its graphic paper production capacity in Europe. The decision culminated in the closure of the Lanaken Mill at the end of December 2023.

Commenting on the transaction, Andy Smith, Partner, Commercial, Carter Jonas said: “This has been an extremely exciting project to work on. The Lanaken Mill site is arguably one of the largest brownfield development opportunities in Belgium and the wider Meuse-Rhine Euroregion. Its connectivity to key transportation infrastructure, including airports, ports, major highways, and inland container terminals, with a location that supports efficient logistics and transport operations, was a key draw for investors. Through collaborating with Ceusters, we have been able to provide critical expertise and strategic guidance throughout this disposal process, resulting in a positive result for our client and UTB.”