Finnish listed real estate company Sponda has said it is withdrawing from Russia and the property fund business over the next three to five years.
Finnish listed real estate company Sponda has said it is withdrawing from Russia and the property fund business over the next three to five years.
Sponda plans to exit the Russian business operations in three to five years. This means that no new investments will be made in the region and existing properties, most of which are located in Moscow, will be sold when market conditions allow.
In addition, no new real estate funds will be established. Existing funds in which Sponda has a minority holding will be managed as before until the end of the term of each fund. Depending on the fund, the term will end between 2014 and 2019. The capital released by the changes will be invested in Sponda’s main markets in Helsinki and Tampere in Finland.
The changes are part of Sponda's new strategy unveiled on Tuesday. The company's main goals are to simplify the business structure, create a stronger investment focus and engender profitable growth.
The focal points for growth will be office properties and shopping centres and property development serving these segments. As for geographic areas, Sponda will focus on prime districts in the Helsinki Metropolitan Area, particularly in the central business district and Ruoholahti, as well as Tampere.
Sponda is a property investment company that specialises in commercial properties in the largest cities in Finland and Russia. The fair value of Sponda’s investment properties is approximately €3.3 bn and the leasable area is around 1.5 million m2.
