TECHNOPOLIS PLC STOCK EXCHANGE RELEASE October 11, 2013, at 1.10 p.m.
Technopolis Preparing Acquisition in Otaniemi
Technopolis is preparing to acquire the Falcon Business Park in Otaniemi, Espoo, (Falcon) Finland and is investigating the possibility to execute the acquisition as a joint venture (JV) with a co-investor. The potential JV would comprise Falcon as well as Technopolis’ Innopoli campus in Otaniemi.
The indicative purchase price for Falcon including taxes is estimated at EUR 77.5 million and the sellers are companies owned by a fund managed by Aberdeen Asset Management. The deal is expected to be signed in October and to be closed by the end of December 2013.
Falcon is a modern, flexible, multiuser campus located right next to Technopolis Innopoli. It comprises four buildings with a total rentable area of 26,300 square meters. The Falcon properties were completed 2007-2011 and the complex has 700 parking spaces of which 500 in an underground parking facility. Technopolis could also expand the campus organically using a land plot in its possession adjacent to Falcon zoned for a total of 19,500 sqm of office space. The initial yield on the Falcon campus is estimated at 7.4% and the stabilized yield at 7.8%. The market yield is 7.0%.
Falcon will be branded and operated as a Technopolis campus using the company’s standard business concept. The buyer will get a three year rental guarantee on Falcon’s vacant space from the sellers. The guarantee will raise the effective financial occupancy rate to approximately 97% at the point of purchase and will gradually decline during the guarantee period.
Technopolis plans to integrate Falcon and Innopoli into a single 60,800 sqm campus with a shared infrastructure, property management and services. The company expects to create value by boosting occupancy, increasing service revenues and through savings in real estate and facility management. In addition, the development of Otaniemi, including a new metro connection in 2015 and the expansion of Aalto University, the leading academic campus in Finland, will strengthen Otaniemi’s position as one of the most attractive hot spots in Finland.
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Technopolis Plc is a listed real estate company that specializes in leasing space and providing services. Its core business idea is to combine business support services with modern, flexible, multi-user business environments. There are approximately 26,000 people and almost 1,400 companies and organizations in Technopolis premises in Finland, Russia, Estonia and Vilnius. The company’s net sales for 2012 totaled EUR 107.3 million and its EBITDA was EUR 55.8 million. The Technopolis Plc share (TPS1V) is listed on NASDAQ OMX Helsinki.
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