TECHNOPOLIS PLC PRESS RELEASE August 26, 2016 at 9.50 a.m.
Technopolis Produces Solid 2nd Quarter Result
Technopolis had a solid second quarter with rising occupancy over Q1 and a positive earnings trend expected to continue through the year-end. While the Group’s net sales and EBITDA were lower than they were in the first half of 2015 due primarily to non-recurring items, Technopolis improved its operational cash flow, boosted service revenues and made good progress with organic growth project completions. The completion of the Yliopistonrinne campus in downtown Tampere and acquisition of Technopolis’ first Swedish campus in Gothenburg will boost the Group’s earnings in the second half.
Technopolis Enters the Swedish Market
In May, Technopolis took an important step in the execution of its growth strategy with the acquisition of the Gårda campus in Gothenburg, the company’s first campus in Sweden. Technopolis CEO Keith Silverang argues that Gothenburg currently offers better risk-adjusted returns than Stockholm and that the Gårda campus is a good strategic fit for Technopolis. “Gothenburg is doing very well and is less overheated than Stockholm. Technopolis Gårda has flexible, good quality assets in an excellent location with good development potential. We are confident that we can boost Gårda’s yield by raising occupancy, diversifying the customer mix, adding services and expanding the campus,” says Silverang.
As for future growth through acquisitions, Technopolis has a clear strategy. “We will continue to expand our campus network in the Nordic-Baltic region focusing on locations with the optimal strategic fit where we can add the maximum amount of value by effectively deploying the Technopolis concept,” says Silverang.
Organic expansion projects are playing a central role in the Technopolis’ growth story. The company completed the Lõõtsa 5 project in Tallinn in January of this year and Yliopistonrinne 3–4 in downtown Tampere in July. More is in the pipeline, as the Delta project in Vilnius will be completed by the end of the year. In June, the decision was also made to expand the Ruoholahti campus in Helsinki. The Ruoholahti 3 project will launch this fall and is due for completion in July 2018.
In Oslo, Technopolis increased its holding in the Fornebu campus by acquiring an additional 30% stake. The company now holds an 81% interest in the campus, while Ilmarinen has a 19% stake.
Growth Opportunities in UMA Workspace
Technopolis is also exploring growth opportunities in coworking spaces. Technopolis expanded its coworking chain in May by opening a new flagship workspace, UMA Esplanadi, in downtown Helsinki. With this new addition, Technopolis now offers coworking spaces in 13 locations.
“Developing new business is always challenging. The trend toward shared working life is picking up steam and with UMA concept we are offering our customers access to modern, efficient and flexible shared working spaces all over our campus network. I’m sure the day is coming when many customers will realize that they need very little, if any, dedicated space at all. We have already sold over 130 membership packages and since UMA Esplandi opened over 700 people have been working there,” says Silverang.
Technopolis’ interim report for 1-6/2016 is available at www.technopolis.fi/investors.
For more information, please contact:
Keith Silverang
CEO
Tel. +358 40 566 7785
Technopolis provides the best addresses for success in six countries in the Nordic-Baltic region. The company develops, owns and operates a chain of 21 smart business parks that combine services with flexible and modern office space. The company’s core value is to continuously exceed customer expectations by providing outstanding solutions to 1,700 companies and their 49,000 employees in Finland, Sweden, Norway, Estonia, Russia and Lithuania. The Technopolis Plc share (TPS1V) is listed on Nasdaq Helsinki.