Strong development in the CapMan Hotels Fund

CapMan Real Estate press release 19 September 2018 at 2.30 p.m. EEST

Strong development in the CapMan Hotels Fund

CapMan Hotels Fund has strengthened co-operation with its tenants Scandic and Lapland Hotels and extended the average maturity of its lease agreements to 19.2 years. The fund has also exited seven assets that were outside its core focus.

CapMan Hotels Fund and hotel operators Scandic and Lapland Hotels have signed new lease agreements or extended existing agreements during 2018 for a total of ten properties in Finland. Following the new agreements, the maturity of the entire portfolio was extended to 19.2 years.

The fund has also exited six hotel properties located in Turku, Kemi, Rauma, Saariselkä, Kuusamo and Vuokatti to a French real estate investor Corum Asset Management. The hotels comprise 870 rooms combined and have long-term leases with Scandic and Holiday Club. The purchase price for the portfolio was 72.4 MEUR. Additionally, the fund sold Original Sokos Hotel Royal in Vaasa to KPO-Kiinteistöt Oy.

"The new contracts further strengthen our co-operation with leading hotel operators as well as the return profile of our fund. Through Scandic, we are actively present in both business and leisure travel throughout Finland. In addition to hotels in Oulu and Tampere, our fund's Lapland Hotels family now includes a hotel in Kuopio, as the operator acquired the hotel operations for Cumulus Kuopio from Scandic. We continuously invest in our assets and develop concepts in co-operation with our tenants. We have centred our portfolio around assets supporting our core strategy and the recent transactions are a continuation of this process," comments Pirjo Ojanperä, Partner responsible for the CapMan Hotels Fund.

CapMan Hotels RE Ky fund was established in 2008 and it currently manages 30 hotel properties in Finland and Sweden. The fund includes, among others, the hotel properties of Crowne Plaza and GLO Hotel Art in central Helsinki.

For additional information, please contact:
Pirjo Ojanperä, Partner, CapMan Real Estate, Tel. +358 50 388 3306, pirjo.ojanpera@capman.com

CapMan is a leading Nordic private asset expert with an active approach to value-creation in its target companies and assets. We offer a wide selection of investment products and services. As one of the Nordic private equity pioneers we have developed hundreds of companies and real estate and created substantial value in these businesses and assets over the last 28 years. CapMan employs today approximately 120 private equity professionals and has approximately €2.8 billion in assets under management. We mainly manage the assets of our customers, the investors, but also make investments from our own balance sheet. Our objective is to provide attractive returns and innovative solutions to investors. Our current investment strategies cover Real Estate, Buyout, Russia, Credit, Growth and Infra. We also have a growing service business that currently includes procurement services (CaPS), fundraising advisory (Scala Fund Advisory), and fund management services. www.capman.com

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