Swiss real estate group Investis Group has sold its real estate services segment to PHM Group Oy, a subsidiary of Finnish PHM Group Holding Oy.
The enterprise value of the deal is CHF 240 mln (€248 mln) and the transaction is expected to finalize within the next few weeks. Operations of all the divested subsidiaries will continue uninterrupted.
Investis will acquire a minority stake in PHM Group TopCo Oy for CHF 50 mln (€52 mln), establishing a strategic partnership.
The move allows Investis to focus on direct property investments, aligning with their long-term strategy.
Proceeds from the sale will be used to acquire new properties and purchase contracts for CHF 201 mln (€207 mln) with a gross rental income of CHF 12.5 mln (€12.9 mln) have been signed. The completion of these real estate acquisitions is foreseen in the coming weeks.
Following property acquisitions using the sale proceeds, Investis' LTV ratio is expected to fall slightly below 26%, as of 31 December 2023.
Stéphane Bonvin, CEO of Investis Group, commented: ‘The sale of all of Investis Group's real estate services companies represents an excellent development opportunity for this business. PHM Group is an experienced pan-European real estate services provider active in Finland, Sweden, Norway, Denmark, and Germany. Investis will now focus on further developing its excellent property portfolio.’
Ville Rantala, Group CEO of PHM Group, added: ‘We are very pleased to enter this new market with the real estate services companies of Investis Group. The corporate culture of the acquired companies is very similar to PHM’s: we operate close to the customer with the strength of local companies and brands. The transaction makes us one of the market leaders in Switzerland and also provides us with an excellent basis for making further acquisitions in the local market.’
Stéphane Bonvin is proposed to be elected to PHM Group’s Board of Directors and will continue to support the development of PHM’s Swiss subsidiaries in the domestic market.
Investis Group’s portfolio consists of mostly residential properties with apartments in the Lake Geneva region valued at CHF 1.52 bn (€1.57 bn) as of 31 December 2023.
