Nordic listed business park owner Technopolis has agreed to acquire a multi-customer campus in Gothenburg, Sweden from private equity firm Niam for a debt-free purchase price of SEK 1.17 bn (€127 mln).
In addition, Technopolis has agreed with the seller on an additional purchase price of SEK 20 mln based on the realization of expansion potential on the campus.
In order to improve solvency after the acquisition, as well as to fund other projects and possible future acquisitions, Technopolis said it is planning a maximum €150 mln rights issue to be executed in the autumn. The details of the rights issue are still in the planning stages, the company said, with the execution of the rights issue requiring approval from the company’s shareholders at an extraordinary shareholders’ meeting.
The campus to be acquired is located in the Gårda office area in the inner city of Gothenburg. Built between 1999 and 2004, it consists of a row of four connected buildings with a total leasable area of 34,300 m2 and includes 155 underground and 35 street-level parking spaces. The current occupancy rate is 94%.
'We have found a campus with very good strategic fit that meets our investment criteria,' said Technopolis' CEO Keith Silverang. 'It has a first-rate location, features good quality, flexible assets and offers good development and expansion potential. The Swedish economy is doing well and has strong indicators for both exports and private consumption. The current average GDP growth in Gothenburg is comparable to Stockholm, and unemployment is slightly lower. We believe that we can generate value by boosting occupancy, generating new service revenues and deploying the Technopolis concept, and so increase the district and campus market value.'
Technopolis said that the net initial yield for the campus is expected to be 5.0% and the stabilized yield 6.0%. The deal includes a net operating income guarantee until 31 December 2017.
Closing of the transaction is expected to take place in July.
