Technopolis Signs an Agreement to Divest Assets in Jyväskylä, Finland for EUR 104.5 Million. Guidance Remains Unchanged.
TECHNOPOLIS PLC STOCK EXCHANGE RELEASE November 21, 2017 at 08:00 a.m.
Technopolis Signs an Agreement to Divest Assets in Jyväskylä, Finland for EUR 104.5 Million. Guidance Remains Unchanged.
Technopolis Plc has signed an agreement to divest its operations in Jyväskylä, Finland. The sales price is EUR 104.5 million, which is approximately the fair value of the assets. The buyers are companies owned by Kielo AB, a real estate company owned by Brunswick Real Estate and a group of international investors. The assets have a total rentable area of approximately 49,000 m2. The closing of the transaction is expected to take place before the year-end 2017. The agreement is conditional to City of Jyväskylä to waive its redemption right related to the property portfolio to be sold.
After this agreement and the earlier divestiture of Viveca campus in Jyväskylä in September 2017, Technopolis has neither assets nor operations remaining in the Jyväskylä region.
The combined impact of the two Jyväskylä divestitures on Group Net Sales and EBITDA on an annual level are approximately 14.5 and 7.2 million euros, respectively. The effect for the rest of 2017 on Group net sales and EBITDA will be approximately EUR 1.3 and EUR 0.5 million, respectively. The estimated impact on the Group’s year-end financial occupancy rate is negligible. The non-recurring costs related to the divestiture are approximately EUR 1.5 million. Costs will be booked in the fourth quarter of 2017. The Company’s guidance remains unchanged.
The Technopolis personnel in Jyväskylä will transfer to the payroll of the new owner.
“Divestitures are an integral part of our revised strategy and this agreement is a major step along that strategic path. We will continue to focus on properties and campuses that offer sufficient future value creation potential”, says Keith Silverang, CEO of Technopolis Plc.
“With respect to Jyväskylä, we think this transaction shows there is international demand for well-managed, high quality and high yielding assets outside of Helsinki Metropolitan Area in Finland”, he continues.
Funds from the divestiture will be used for general corporate purposes, including financing of the company’s strategic growth projects. In connection with the transaction, the company will repay EUR 16.5 million of financial lease liabilities related to the assets.
Technopolis Plc
Additional information:
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 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.
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