TECHNOPOLIS Expands into Estonia
TECHNOPOLIS PLC STOCK EXCHANGE RELEASE March 26, 2010 at 12.45 p.m.
Technopolis has concluded an agreement with the Tallinn-based Smart City Group As and its subsidiary Ülemiste City As to establish a joint venture. The joint venture will be formed by Technopolis acquiring a majority holding in a company to be founded and owned by Smart City Group As. The new company, to be named Technopolis Ülemiste, will have a property portfolio comprising approximately 70.000 square meters of space currently held by Smart City Group As subsidiary Ülemiste City As located next to Tallin International Airport. Approximately 47.000 square meters of the space consists of modern office buildings ranging from 1-5 years in age.
The pro forma enterprise value of the Technopolis Ülemiste joint venture (to be founded) is estimated at MEUR 63,5 with loans totaling MEUR 44. The company’s estimated full-year net sales is expected to total MEUR 4,75 and its estimated EBITDA will be approximately 4 million euros. Pro forma figures have been formulated on the basis of the financial statements as of the end of the previous fiscal year. Technopolis’ investment in the venture totals MEUR 9,93, including an earn-out payment totaling MEUR 0,5 which will be based on the achievement of commercial targets over the next two years.
Technopolis Group will have a 51 % holding in the Technopolis Ülemiste joint venture, while the remaining 49 % interest will be held by Smart City Group subsidiary Ülemiste City As.
Technopolis Ülemiste will have a roughly 10% share of the Tallinn office space market. The impact of the agreement on Technopolis Plc sales and earnings will depend on how long it takes to complete the closing of the deal. Once the deal has closed Technopolis Ülemiste will become a part of the Technopolis Group.
- ”Technopolis Ülemiste will be our first international acquisition and lays an excellent foundation for further growth in Estonia. The Technopolis growth strategy calls for establishing operations in 2-3 new countries outside Finland by the year 2014”, says Technopolis Executive Chairman Pertti Huuskonen.
- ”By partnering with a professional team with a proven track record we will gain swift access to the Tallinn market. With a world class team, infrastructure and customer base, Technopolis Ülemiste center already meets our selection criteria”, says Technopolis CEO Keith Silverang
The final execution of the deal within the planned framework depends on the approval of due diligence and joint venture financing procedures. Assuming these procedures are successfully concluded, we estimate that the closing will take place in June of 2010.
Issued by www.technopolis.fi / Published to the Site www.naibaltics.com by NAI Baltics – commercial real estate services in Latvia, Lithuania, Estonia. Your trustworthy partner, advisor and consultant in the Baltics and Worldwide. http://www.naibaltics.com