Prisma Properties acquires ten grocery retail properties in Finland
Prisma Properties has signed an agreement to acquire ten standing assets in Finland through a sale and leaseback transaction with Kesko Oyj, one of Finland's largest grocery retail chains. The properties are being acquired at a total underlying property value of approximately EUR 59 million, corresponding to approximately SEK 650 million, and comprise a total lettable area of approximately 23,500 square meters. The properties are fully let to Kesko, and the annual rental value amounts to just over EUR 4 million, corresponding to approximately SEK 44 million. The average remaining lease term (WAULT) is 11.6 years.
The property portfolio includes the K-Citymarket, K-Supermarket, and K-Market store concepts and is located in Sastamala, Jyväskylä, Lappeenranta, Vihti, Oulu, Saarijärvi, Liminka, Imatra, Loviisa, and Eurajoki, with a clear concentration in southern and southwestern Finland. Closing will take place on 1 December.
"This is a fantastic acquisition in many ways. We are strengthening our collaboration with Kesko, a leading player in the Finnish grocery sector, and increasing the share of groceries in our portfolio. With this acquisition, we have exceeded our initial volume target for Finland and, in a short period of time, succeeded in building up a modern and attractive property portfolio with a total value of over SEK 1.1 billion“, says Tom Hagen, Head of Transactions at Prisma Properties.
"This deal aligns with our strategy of operating as a tenant with long-term leases, in some locations. We already partner with Prisma Properties on our K-Citymarket Ylivieska store opening in 2026, and now we're expanding our collaboration to ten grocery stores. This supports our focus on investing in strategic store sites in growth centers while maintaining our broad store network through long-term leases that enable remodeling across all locations", says Nuutti Rantatupa, Vice President of store sites and retailer operations at Kesko's grocery trade.
The properties are being acquired at a yield above the average for Prisma Properties' existing portfolio, and the acquisition is expected to increase earnings per share by approximately 5 percent compared to the company's latest interim report.
The acquisition is being financed through a combination of loans and equity. Castrén & Snellman Attorneys has acted as legal advisors, PwC as financial advisors, and Naava Partners as technical advisors.
