Finnish listed real estate firm Sponda and local pension-insurer Varma have completed the launch of a logistics joint venture with nearly €920 mln of assets.

Finnish listed real estate firm Sponda and local pension-insurer Varma have completed the launch of a logistics joint venture with nearly €920 mln of assets.

The new vehicle, called Certeum, has bought 34 assets from the two firms in a debt-free transaction.

Sponda will be a minority shareholder, holding no more than a 38% stake, and is committed to holding its shares until at least spring 2015. After then, the company plans to reduce its ownership in Certeum.

Varma Mutual Pension Insurance Company owns a further 39% in Certeum with the State Pension Fund of Finland holding a 10% interest. Other domestic investors have the remaining 13%.

The assets vary in size, but many are within the greater Helsinki region, including one of the largest, the 56,000 m2 office and logistics centre, Vantaan Honkatalo Koy, in Vantaa.

As part of the deal, Sponda has sold 12 logistics properties for €217 mln, or a yield of 7.2%, as well as its shares in the real estate funds Sponda Fund I, Sponda Fund II and Sponda Fund III for another €77 mln.

Kari Koivu, Senior Vice President in charge of Sponda’s Real Estate Funds business segment, will transfer to Certeum and leave his post as a member of the Sponda Executive Board.

As a property investor, Certeum specialises in owning, leasing and developing logistics and industrial properties. The company owns a portfolio with a leasable area of 1.3 million m2 and has a 24 staff.

'A company specialising in logistics and industrial properties has been lacking on the Finnish market,' commented Certeum’s CEO Jorma Lehtonen. 'Certeum, with its property assets of almost €1 bn, will be one of the largest property investment companies in Finland.'

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