US private equity firm Blackstone is finalising its €3.8 bn takeover of Sponda by acquiring the remaining outstanding shares in the Helsinki-listed shopping centre and office landlord.
Sponda announced a number of share trades via Polar Bidco, the vehicle being used by Blackstone for the takeover, on 20 and 21 July. This was in response to the launch of a supplementary offer on 19 July.
Blackstone already held 96.78% of Sponda's shares by 20 July.
Sponda focuses on retail and office properties in Finland. Its portfolio was valued at around €3.8 bn in March this year.
Blackstone launched its friendly bid in June. The deal included €2 bn of Sponda's debt, plus €1.8 bn in equity. JLL acted as the sole commercial real estate adviser for Polar Bidco's tender offer. Nordic investment manager Areim is a co-investor alongside Blackstone.
The deal is one of the largest real estate transaction and one of the largest corporate transactions ever in Finland.
Christian Hohenthal, head of capital markets JLL Finland, said, 'Our client has a strong focus on accessing high-quality real estate globally and in the Nordic region. Sponda is the leading listed vehicle in Finland concentrating on high-quality commercial properties in growth areas, in particular the Helsinki Central Business District and inner city.
'In these areas, investors currently have the opportunity to benefit from excellent real estate market fundamentals. In Finland, strong indicators today include GDP growth, the highest level of consumer confidence ever measured in the country, and in Helsinki, one of the fastest growing populations in Western Europe.'
James Seppala, head of European real estate acquisitions at Blackstone, added, 'Our acquisition represents another step in Blackstone's long-standing strategy of investing in high-quality real estate assets and businesses across the Nordic region.'
In the last two years, Blackstone has made a significant push into the Nordics, with deals including the acquisition of 10 funds from Obligo in 2015, paying around €2.4 bn for a diverse package of assets in Norway, Sweden, Finland, Latvia, Germany and the US. Significant portions of this portfolio were subsequently sold.
Last year, Blackstone acquired a major stake in D. Carnegie & Co, the largest listed real estate company in Sweden specialising in residential property.
