Tamar European Industrial Fund has announced that it has sold a further asset in Finland to a private investor for a total consideration of 1.6 million.
The asset, an 11,804-m² purpose-built factory, dating from the 1960s, is located at Lahnuksentie 215, Klaukkala, some 30 km north of Helsinki.
The property was, until 2010, let to a single tenant. Since the departure of the tenant, a leasing program has been put in place and there are currently nine tenants at the asset, giving an occupancy rate of 58%.
"However, the main tenant is leaving in June 2012 and, if no further lettings are secured, the occupancy level will then fall to 27%, resulting in a negative net operating income. In view of this, the sale price reflects a discount to the latest Fund valuation as at September 2011 of almost 20%.
This sale represents a continuation of the Nordic sales program, following closely behind the sale of an asset at Nittylanpolku 5, in Helsinki as announced on December 21.
Rob Brook, Managing Director of Tamar Financial Services Ltd, Investment Manager to TEIF, commented: "The decision to sell the asset at this point in its cycle reflects our belief that the leasing up of this asset will continue to be difficult in 2012 and that therefore its liquidity and value will also suffer.
"The transaction offered a fast all-cash solution and it was considered preferable to take the hit on value now rather than risk a greater one over the short to medium term."
Realia acted for TEIF on the disposal.
Source: FTI Consulting