Baar-Zug, Switzerland, 8 September 2014
Partners Group, the global private markets investment manager, has completed the purchase of a real estate portfolio of retail and office properties in Finland and Sweden on behalf of its clients, via a secondary transaction. The portfolio was acquired at a discount and comprises a total of approximately 380'000 square meters of let-able area with a remaining value of around EUR 300 million.
The portfolio was originally built up in 2006-2007 and operated by Niam AB, a private equity real estate manager in Northern Europe. Niam sought a buyer that was capable of acquiring a multi-sector, multi-country portfolio and who recognized the potential in further developing the asset management strategy. Partners Group provided an off-market solution, allowing an exit for investors and time to maximize the value creation potential of all remaining assets over the next three to five years.
In conjunction with the eventual transaction, Partners Group was involved in negotiating the refinancing of all existing debt facilities, as well as the buyout of minority shareholders and joint venture partners and the prepayment of a mezzanine facility incumbent in the capital structure of one of the investments at preferential terms.
Fabian Neuenschwander, Vice President, Real Estate Secondaries, Partners Group, says, “We believe the Finnish and Swedish real estate markets will continue to perform well in the coming years and see this transaction as a unique opportunity for our clients to benefit from this development. Partners Group played a leading role in securing new debt financing for the portfolios and injecting fresh equity capital to support the asset management strategy, which will now have the time it needs to maximize value creation potential.”
Pekka Salakka, Senior Director at Niam AB, says, “Niam is very familiar with these properties because we have been successfully operating these assets since the build-up of the portfolio. We look forward to working with Partners Group to execute the value creation strategy in the coming years.”
Partners Group is one of the most active acquirers of real estate portfolios through secondary transactions and, since the financial crisis, has invested over USD 2.7 billion globally in this area.