Samson Properties, RBS and Ajanta Oy will make the acquisition through a jointly owned company. Samson Properties is the majority shareholder with Ajanta Oy and RBS as minority shareholders. RBS is also structuring and providing the financing for the transaction. All three companies have wide experience from real estate investments.
“The announced transaction is a good example of the currently very active real estate market, which has plenty of buyers, sellers, properties and money in circulation. Demand for larger real estate portfolios is at a high level and also reflected in sales prices. During our ownership we have developed the portfolio very actively through new acquisitions, by developing individual properties and by attracting new tenants. The announced transaction is very good for the fund investors in CapMan Real Estate I,” states Markku Hietala, the Head of CapMan Real Estate.
“This purchase confirms the interest Samson Properties has in the Finnish real estate market. The portfolio of properties the consortium is buying offers interesting opportunities and creates a platform for us to operate on here in Finland. We believe that Finnish expertise and know-how will be valuable in developing our activities in Finland and elsewhere in Europe,” says Sveinn Björnsson, Managing Director of Samson Properties Ltd.
CapMan Plc’s subsidiary CapMan Real Estate Oy acts as CapMan Real Estate I’s management company. CapMan Plc controls 80% and Corintium Oy 20% of CapMan Real Estate Oy. Following the announced transaction, the management company receives approx. EUR 21 million in carried interest. CapMan Plc’s share of the carried interest received by the management company is 64%, and the aggregate share of CapMan’s real estate team and Corintium Oy is 36%. Due to the aforementioned carry split structure the share of the parent company’s owners is approximately EUR 13.5 million of the carried interest and the share of minority owners is approximately EUR 7.5 million.
“CapMan’s real estate activities have developed very favourably. The announced transaction is a logical next step for the successful building and development of the portfolio, which has, compared to market average, very attractive composition, leasing contracts and vacancy rate level. For CapMan’s result this is an excellent start for the year 2007,” says Heikki Westerlund, CEO of CapMan Plc.
CapMan Real Estate I was established in June 2005 and it is currently in the middle of an active investment phase. After the announced transaction the fund’s investment capacity will be EUR 200 million. The fund will continue its investment activities according to original plans and the original investment strategy of targeting commercial properties in the Helsinki metropolitan area. The investment capacity of CapMan RE II fund is approximately EUR 276 million and the fund invests mainly in property development in Finland.
“We will continue building our real estate portfolio and developing it as previously. We believe that it is still possible to find individual properties that fit our fund’s investment focus and which we can acquire on competitive terms in the market,” states Markku Hietala.
Appendix 1: Properties in the sold portfolio
Press and analyst conference:
We would like to invite the media and analysts to a press conference today, 20 December 2006 at 2.30 p.m. in CapMan headquarters, Korkeavuorenkatu 32. The conference will be held partly in Finnish. The presentation material in English will be shown on CapMan’s Internet pages when the press conference has commenced.
For further information, please contact:
Markku Hietala, Head of CapMan Real Estate, tel. +358 500 405 879
Heikki Westerlund, CEO, CapMan Plc, tel. +358 9 6155 8304 or +358 50 559 6580
Tapio Peltomäki, Managing Director, Ajanta Oy, tel. +358 400 523 949
Sveinn Björnsson, Managing Director, Samson Properties Ltd, tel. +354 414 6000
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