Technopolis Acquires Office Property in Vilnius


TECHNOPOLIS PLC            STOCK EXCHANGE RELEASE          April 6, 2017 at 5:30 p.m.

Technopolis Acquires Office Property in Vilnius

Technopolis has acquired an office property under construction in Vilnius neighboring its own campus in Ozas area. In addition, the company has signed a sale and purchase agreement to acquire a neighboring land plot with expansion potential of at least 20,000 square meters. The total investment value of the deal is approximately EUR 32 million. The building, with a gross leasable area of approximately 13,800 square meters and a pre-let rate of 44%, is expected to be completed in October 2017. The seller of the properties is ICOR Group.

The building acquisition was signed and closed today and the closing of the plot acquisition is expected to take place by the year end 2017. The net sales impact of the deal is estimated to be EUR 0.3 million and the EBITDA impact EUR 0.2 million in 2017. The company’s outlook for 2017 remains unchanged. The initial yield at the point of completion is expected to be 6.5%, and the stabilized yield based on an assumed 95% occupancy will be at least 8.4%.

“These investments will allow us to expand our business in Vilnius in accordance with the company’s growth strategy,” says Keith Silverang, CEO of Technopolis. “Our current campus is full, and the occupancy of our recently completed Delta building is over 90%. This deal will enable us to provide customers with expansion space almost immediately, while providing a growth platform for the next step in our organic expansion in Vilnius.”

The investment will have a positive impact on EPS and to be financed with the company’s own liquid funds.

Technopolis Plc

Additional information:

Keith Silverang
CEO
Tel. +358 40 566 7785

Otso Halsti
Group Investment Officer
Tel. +358 40 763 8083

Technopolis provides the best addresses for success in six countries in the Nordic-Baltic region. The company develops, owns and operates a chain of 20 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 50,000 employees in Finland, Sweden, Norway, Estonia, Russia and Lithuania. The Technopolis Plc share (TPS1V) is listed on Nasdaq Helsinki.