Finnish property company Technopolis said it is stepping into the Estonian market with the acquisition of a 51% stake in a 70,000 m[sup]2[/sup] portfolio valued at EUR 63.5 mln.
Finnish property company Technopolis said it is stepping into the Estonian market with the acquisition of a 51% stake in a 70,000 m2 portfolio valued at EUR 63.5 mln.
In a statement, the listed company said that it has entered into an agreement with Tallinn-based Smart City Group and its subsidiary Ulemiste City As to establish a new joint venture which will take control of the assets.
The new company, to be named Technopolis Ulemiste, will acquire the portfolio which includes around 47,000 m2 of newly-developed office space in Tallinn. It will also take over around EUR 44 mln of debt associated to the assets, Technopolis said. The company controls 51% of the new arm while Ulemiste City As holds the remaining 49%. The closing is expected to take place in June.
'Technopolis Ulemiste will be our first international acquisition and lays an excellent foundation for further growth in Estonia,' said Technopolis' executive chairman Pertti Huuskonen. 'By partnering with a professional team with a proven track record we will gain swift access to the Tallinn market'.
Technopolis' growth strategy is to expand into two-three new countries by the year 2014, he added.
In March, the company said it was granted EUR 32 mln in financing from the European Bank for Reconstruction and Development for the development of Phase I of the Technopolis Pulkovo business centre. Part of the loan is expected to be syndicated by Nordea Bank and Pohjola Bank.
