Posti Group sells its real estate properties

Posti Group Corporation has signed an agreement to sell approximately 130,000 sq.m. real estate portfolio to Norwegian company Ness, Risan & Partners (NRP). The portfolio to be sold consists of three postal centers, one warehouse and one freight terminal in Finland.

The real estate properties will transfer to the new owner on April 22, 2015, with the exception of the freight terminal that will transfer upon its completion in late 2016. On behalf of NRP the property manager will be the Swedish property management company Wilfast Forvaltning (Wilfast).

Posti will continue its business operations in the properties with long-term leases. The sale of the properties is part of Posti Group’s plan to release capital for investments, among other purposes.

“As for the new owner of the properties, Posti Group was looking for a long-term investor that will continue the development of the properties together with Posti, taking the long-term requirements of our business operations into account. NRP creates good prerequisites and a framework for the future by offering greenfield investment opportunities, too. A good example of this is the financing of the future Pirkkala terminal. The market situation was favorable for selling the properties,” says Marko Tulokas, CEO of Posti Kiinteistöt Ltd.

The transaction price for the real estate portfolio is approximately EUR 120 million, of which the share attributable to the freight terminal will be paid in late 2016. After taxes, Posti Group will record a more than EUR 30 million non-recurring capital gain from the transaction in the second-quarter result for 2015. The transaction also affects the balance sheet; the properties to be sold constitute 5% of the total assets on the balance sheet.

Posti Group has a total of approximately 1,000,000 square meters of premises in its use. The area of the properties to be sold accounts for approximately 13% of the total area of the premises.

“We are very pleased with the transaction, the tenant and the assets and look forward to a long-term relationship with Posti. The transaction fits well into our investment profile with a strong tenant, long lease contract and modern properties,” says Knut Ekjord, Partner at Ness, Risan & Partners.

The properties to be sold are:
·        Tampere postal center (Perkkoonkatu 13, Tampere)
·        Kuopio postal center (Patterimäenkatu 5, Kuopio)
·        Oulu postal center (Takalaanilantie 2, Oulu)
·        Tuusula warehouse (Palkkitie 1, Tuusula)
·        Freight terminal in Pirkkala, estimated to be completed in late 2016 (Linnakalliontie, Pirkkala)

The sale of the properties has no impact on personnel.

For further information, please contact:
Marko Tulokas, CEO, Posti Kiinteistöt Ltd
Sari Helander, CFO, Posti Group Corporation
Posti MediaDesk tel. +358 (0)20 452 3366 (Monday to Friday 9:00 a.m. – 4:30 p.m.)

Posti Kiinteistöt Ltd is responsible for Posti Group’s real estate portfolio. It is a wholly owned subsidiary of Posti Group Corporation and the centralized location of all of the Group's Finnish real estate ownership and management. Posti Kiinteistöt Ltd is responsible for a real estate entity of approximately 1,000,000 square meters, including Posti sorting centers, delivery points, warehouses, other production plants, as well as office premises and Posti shops. There are a total of 700 locations throughout Finland.

Ness, Risan & Partners is an independent and privately owned investment services company focusing on the Real Estate, Shipping and Offshore industries. The NRP Group has completed transactions worth more than Euro 7 billion and is one of the bigger players in the Nordic Logistic/Warehouse Real Estate market. The company was established in 2000 and has about 50 employees. Wilfast Forvaltning is a Swedish, independent privately owned property management company.