Valad, the European multi-let real estate investment manager, has completed the disposals of four commercial assets totaling 5 million in Finland on behalf of European Commercial Real Estate Limited ('ECREL').
Valad was appointed investment manager of the ECREL portfolio in April 2010 with a mandate from investors and the senior lender to build sustainable value in the portfolio including undertaking disposals of assets in line with individual business plans.
The disposals of Ristipellontie 17, Helsinki; Martinkatu 6, Raiso; Salvumiehenkatu 4, Turku; and Linnanherrankuja 1-3, Helsinki are part of this strategy following the completion of their respective business plans.
Michael Bruhn, Head of Nordics for Valad, said: "The disposal of these four assets, in excess of their valuations and in a difficult market for secondary warehouse and logistics assets in Finland, is positive progress with our strategy for the ECREL portfolio.
"With all four assets, we were able to identify local purchasers, with two of the assets being sold to existing tenants. This is testament to the relationships our local asset management team has with their tenant customers."
In April 2010, Valad secured a five-year investment management mandate for ECREL, to provide investment management services for the mixed commercial portfolio, currently comprising properties spread across the Nordics, Germany, and the Netherlands.
Valad subsequently co-invested to acquire 49% of the equity in ECREL, alongside the original investors who hold the other 51% of the equity. A 200 million refinancing of the portfolio was completed in 2011, following the renegotiation of a new financing package with the Lloyds Banking Group.
Valad manages approximately 1.2 billion of assets in the Nordic region, comprising 200 properties and almost 2,000 tenants, managed by teams in Denmark, Sweden and Finland.
Source: Tavistock Communications