Technopolis acquires Finnish business park

Helsinki-listed property company Technopolis is to acquire the 26,300 m2 Falcon Business Park in the Otaniemi district of the Finnish city of Espoo.

The total investment, including transfer taxes, is €77.5 mln, with the transaction expected to close in two tranches by end-2013.

Technopolis initially announced its intention to acquire Falcon from a fund managed by Aberdeen Asset Management on 11 October, saying it was investigating the possibility of carrying it out in a joint venture with a co-investor. The negotiations with the co-investor have ended and Technopolis is to execute the acquisition on its own.

The closing of the deal is subject to the fulfilment of a number of normal conditions. The acquisition will be financed using Technopolis’ existing credit facilities.

Technopolis plans to integrate the four-building Falcon scheme with Innopoli, its existing two-building business park in Otaniemi into a single 60,800 m2 campus with a shared infrastructure, property management and services.

The initial yield on the Falcon campus is estimated at 7.4% and the stabilised yield at 7.8%. This compares with a market yield of 7%. Technopolis will get a three-year rental guarantee on vacant space from the sellers. The guarantee will raise the effective financial occupancy rate to 97% at the point of purchase, which will gradually decline during the guarantee period.