Nyfosa intends to build up a diversified property portfolio with a long-term perspective in the Finnish property market together with Brunswick Real Estate. An opportunistic property company such as Nyfosa does not currently exist in Finland, and Nyfosa believes that there are attractive business opportunities.
Nyfosa and Brunswick Real Estate will form a company with the aim of building up a property portfolio with a value of about SEK 7 billion within five years. The acquisition focus will be broad and in line with Nyfosa's operations in the Swedish market. It will include all asset classes except residential properties, and be focused on Finnish regional towns and cities. Nyfosa sees an opportunity to establish a diversified property portfolio that will positively contribute to growth in cash flow per share.
Brunswick Real Estate, which has operated in the Finnish market since 2006 and has an impressive track record in the country, will lead operational activities relating to transactions, property management and sustainability under a management agreement. The company is initially 90 percent owned by Nyfosa and 10 percent by Brunswick Real Estate.
"After having monitored the Finnish market for some time, we can see that there are attractive business opportunities in the country that have the potential to offer solid returns. We have high ambitions and our goal is to grow quickly, provided we identify the right business deals. By leveraging the joint strengths of both companies, coupled with a strong capital and bank market, we have the right opportunities to achieve this goal. We have a transaction pipeline that we are evaluating," says Stina Lindh Hök, CEO of Nyfosa.
"We are thrilled to broaden our already established operations in Finland, and in particular to do this together with an agile and transaction-oriented company like Nyfosa. Our complementary fields of expertise and Brunswick's proactive property management activities focusing on measurable sustainability give us the best starting point for a successful investment mandate," comments Patrik Andersson, Chief Executive Officer of Brunswick Real Estate.