IVG Immobilien AG has today entered into a sale and purchase agreement of 71,42 % of the shares in the listed Finnish Polar Real Estate Corporation (Polar KiinteistÃÂ¶t Oyj). The transaction is conditional upon receipt of the approvals of the competent competition authorities. Sellers are Cervuctum Oy, UPM-Kymmene Corporation, Nordea Bank Finland Plc, Partek Corporation, Suomen Osuuskauppojen Keskuskunta and WÃÂ¤rtsilÃÂ¤ Corporation.
The purchase price of 0,75 Ã¢âÂ¬ per share is approximately 24% higher than the trading-volume-weighted average price paid for the security in public trading during the 12 months before this date. The transaction will be executed through the stock exchange.
Through the transaction IVG is expanding towards northern Europe and has succeeded in securing the penetration of one of the sound property markets in Europe. The value of the Polar real-estate portfolio amounts to approximately Ã¢âÂ¬ 350m, with office properties coming to 60% of the portfolio. Shopping centres at attractive locations come to 40%. Furthermore Polar is the owner of plots of land providing development potential of more than 200,000 mÃÂ² of gross floor area in Helsinki. 70% of the 38 properties are situated in Helsinki. Letting quota of the portfolio is 95%.
IVG shall, pursuant to the Finnish securities market legislation, submit a mandatory redemption offer to the remainder of the shareholders to redeem their shares. The commencement of the redemption offer period shall be notified approximately in connection with the closing of this transaction; the redemption price will be 0,75Ã¢âÂ¬ per share.
Finland is among the most stable economies in Europe
Finland is one of the countries that are standing out from the rest in the Euro zone. For years growth rates have been above the EU average. State revenue is exceeding public expenditure, with national indebtedness coming to not more than 40% of the GDP. This positive economic and political data speaks well for the potential of the Finnish property market in the long run.
The greater Helsinki region has a population of 1.2 million. The greater Helsinki region with 7.4 million square metres of office space can be compared with Madrid. Vacancy rate for office space in Helsinki is amounting to 7%.
After the successful acquisition of the Swedish stock company ASTICUS AB in 1999, with properties in London, Brussels, and Paris, the takeover of Polar is the second extensive acquisition carried out by IVG by means of a takeover of a listed real-estate company in Northern Europe.
IVG manages a real-estate portfolio worth Ã¢âÂ¬ 6bn and is developing a proportional project volume of one billion Euro. Investments are focused on major cities and growth centres in Europe.
Source: IVG Immobilien AG