Delta Motor Group sells properties to Sveafastigheter
Delta Motor Group (”Delta”) has on February 28th 2011 signed an agreement to divest 16 properties located across Finland to a company co-owned by Sveafastigheter Fund III and Mattila & Saxen Property Partners. The purchase price amounts to EUR 42 million.
The transaction includes properties in e.g. Helsinki, Turku, Tampere, Lahti, Jyväskylä and Kuopio. The total leasable area amounts to 53,000 sqm. Additionally, there is approximately the same amount of building rights on the plot.
All properties are leased to Delta with long lease agreements. Delta’s operations in the buildings include sale of used and new cars as well as car service.
Sveafastigheter Fund III is an opportunistic fund focusing on real estate investments in the Nordic and Baltic countries, primarily Sweden and Finland. The fund has capital commitments totalling EUR 317 million. Mattila & Saxen Property Partners is a Finnish real estate company specialised in offering solutions to retail tenants and is a local partner to Sveafastigheter within the retail segment.
”Maintenance and management of properties is not part of Delta’s core competence. A professional property owner’s involvement will bring significant additional value to our business”, Delta’s CFO Jari Onniselkä comments on the background of the transaction.
”Delta is an active player who is in a phase of strong growth. Through our business model, which is based on local partnerships, we can quickly react on and support changes in Delta’s business. The co-operation that we have initiated with Mattila & Saxen enables us to actively serve users’ and tenants’ needs on the Finnish property market”, says Patrick Gylling, partner and CIO at Sveafastigheter.
Juha Mattila, partner at Mattila & Saxen notes: “Our business is based on the tenants’ needs in retail properties. We will work in close co-operation with Delta’s operative management to ensure that the properties serve the business fully.”
Advium Corporate Finance acts as financial advisor in the transaction. Castrén & Snellman Attorneys acted as the legal advisor to the seller, whilst Hannes Snellman Attorneys acted as legal advisor to the buyer.
For comments and further information, please contact:
CFO Jari Onniselkä, Delta Motor Group, phone +358 50 581 4261
Partner and CIO Patrick Gylling, Sveafastigheter, phone +358 40 542 6397
Partner Juha Mattila, Mattila & Saxen Property Partners, phone +358 40 560 5194
Delta Motor Group imports Kia, Mitsubishi, and Lada cars, employing a total of approximately 60 employees. Delta brought Kia, one of Europe's fastest growing car brands, to Finland in 2004. The group consists of a full-service dealership chain Delta Auto, which sells and services Kia, Mitsubishi and Mazda cars locally through 28 branches. In addition, Delta offers servicing for Fiat, Alfa Romeo, Lancia and Lada-branded cars and in several locations also for Chevrolet, Saab and Opel-branded cars. A total of approximately 450 automotive professionals are employed by Delta Auto, which is one of the country's largest sellers of used cars.
Sveafastigheter is a leading Nordic private equity firm focusing solely on real estate investments. The first opportunistic real estate fund, Sveafastigheter Sverige I, was launched in 2003. In 2006 Sveafastigheter launched its second fund, Sveafastigheter Fund II and Sveafastigheter Fund III, was closed in February 2011. Sveafastigheter is based in Stockholm with offices in Helsinki and Malmö.
Mattila & Saxen Property Partners is a Finnish real estate company specialised in offering solutions to property users and tenants within the retail segment. Key clients include domestic and foreign tenants. The company buys properties where it can add value through its competence. Mattila & Saxen’s intention is to build, together with Sveafastigheter, a significant portfolio of commercial real estate in the coming years.