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Real Estate Funds

Sponda’s Real Estate Funds business unit serves as the active manager and part-owner of the funds’ real estate portfolios. The focus of the company’s business operations shifted as a result of a change in strategy in 2013, and Sponda now plans to exit the Real Estate Funds business within the next three to five years.

Through its real estate funds, Sponda invests in office, retail and logistics properties located in medium-sized Finnish towns, outside the company’s core geographical area.

Sponda is involved as a minority investor in the four real estate funds: First Top LuxCo, Sponda Fund I, Sponda Fund II and Sponda Fund III. It is responsible for managing the properties owned by Sponda Fund I, Sponda Fund II and Sponda Fund III. Sponda receives management fees for the real estate portfolios it manages.

Sponda Fund III purchased a logistics property, Sponda Fund II sold an industrial property

In December, Sponda Fund II sold a majority stake in an industrial property located at Santasalonkatu 5 in Karkkila to SEW Industrial Gears Oy, the Finnish subsidiary of SEW-Eurodrive Group. The total area of the manufacturing and office premises at the property is approximately 14,000 square metres. The fund primarily invests in logistics, warehouse and industrial properties in medium-sized towns in Finland.

Sponda Fund III purchased a logistics property in Vantaa’s Hakkila district in February 2013. The fund invests primarily in logistics properties in medium-sized towns in Finland.

Sponda manages the NIAM III East Holding Oy fund which continued to sell property in 2013 in line with its strategy. Sponda does not have an ownership stake in the fund.

Sponda is also joint owner of the Russian Invest property investment company, which made its first investment decision in 2013. The investment company purchased a 55 per cent share in the Okhta Mall shopping centre project located in St. Petersburg. The shopping centre was granted a building permit in August 2013, and construction began in the autumn. Sponda owns 27 per cent of Russian Invest.

Fund management to continue until the end of the term of each fund

According to Sponda’s new strategy, the company is planning to exit the Real Estate Funds business within the next three to five years. Existing funds will be managed as before until the end of the term of each fund, but no new real estate funds will be established. Depending on the fund, the term will end between 2015 and 2019.

 

Key figures
  2013 2012 2011 2010 2009
Total revenue, M€ 6.8 6.5 6.4 7.2 12.7
Operating expenses, M€ -1.6 -1.3 -1.4 -1.5 -1.9
Net operating income, M€ 5.2 5.2 5.0 5.7 10.9

 

Management fees and share of profit 1–12/2013 1–12/2012
Management fees 6.8 6.5
Realised gains by real estate funds 10.7 7.5
Total 17.5 14.0

 

Real estate funds in which Sponda is an investor
  Portfolio value at the end of 2013, M€ Sponda's share of the fund, % Managed by Sponda
Sponda Fund I 162.4 46 x
Sponda Fund II 175.2 44 x
Sponda Fund III 103.8 36 x
First Top LuxCo 66.1 20  

In Brief

  • Sponda Fund III purchased a logistics property in Hakkila in February.
  • Sponda Fund II sold an industrial property in Karkkila in December.
  • The property investment company Russian Invest made its first investment decision in St. Petersburg.

Read more about Sponda's Real Estate Funds.