Sveafastigheter JV buys Finnish properties for EUR 42m

A joint venture between Sveafastigheter Fund III and Mattila & Saxen Property Partners has signed an agreement to buy 16 properties across Finland from Delta Motor Group for EUR 42 mln. The transaction includes properties in Helsinki, Turku, Tampere, Lahti, Jyväskylä and Kuopio. The total leasable area amounts to 53,000 m².

All the properties are leased to Delta on long-lease agreements. Delta’s operations in the buildings include the sale of used and new cars as well as car services.

Sveafastigheter Fund III is an opportunistic fund focusing on real estate investments in the Nordic and Baltic countries, primarily Sweden and Finland. The fund has capital commitments totalling EUR 317 mln. Mattila & Saxen Property Partners is a Finnish real estate company specialised in offering solutions to retail tenants and is a local partner to Sveafastigheter within the retail segment.

'Maintenance and management of properties is not part of Delta’s core competence. A professional property owner’s involvement will bring significant additional value to our business', Delta’s CFO Jari Onniselkä said.

Patrick Gylling, partner and CIO at Sveafastigheter, commented: 'Delta is an active player who is in a phase of strong growth. Through our business model, which is based on local partnerships, we can quickly react on and support changes in Delta’s business. The co-operation that we have initiated with Mattila & Saxen enables us to actively serve users’ and tenants’ needs on the Finnish property market.'

Juha Mattila, partner at Mattila & Saxen said: 'Our business is based on the tenants’ needs in retail properties. We will work in close co-operation with Delta’s operative management to ensure that the properties serve the business fully.'

Advium Corporate Finance acted as the sell-side adviser on the transaction. Castrén & Snellman Attorneys was the legal adviser to the seller, whilst Hannes Snellman Attorneys acted as legal adviser to the buyer.