Hemsö in Transaction with the City of Turku
Finland Hemsö and the City of Turku are preparing a transaction whereby Hemsö will acquire a property portfolio comprised of eight nursing homes and health care properties from the City of Turku in Finland. The acquisition cost amounts to EUR 130M.
The seller is the City of Turku, which will become the tenant with a remaining average lease term of 11 years. If the planned social and healthcare reform in Finland is carried out with a number of autonomous regions (county councils), the lease agreements will be transferred to the newly formed region.
The property portfolio being acquired encompasses slightly more than 80,000 sqm and can be divided into three sub portfolios: the city hospital area comprising 11 leasehold buildings, a nursing home portfolio consisting of five properties and a health care property portfolio with two properties. The properties are centrally located in Turku, which makes them interesting in terms of continued investment and property development.
“We are very positive to the partnership with the City of Turku. Turku is an extremely good investment market with numerous development possibilities, and we plan to further broaden our portfolio,” says Gustav Björkman, CIO of Hemsö.
“We are pleased about strengthening our ties with the City of Turku. The growing Turku area is interesting for us and accordingly, it is very positive that we are increasing our presence there. Gaining the City of Turku as a strategic partner provides us with the possibility to contribute to the city’s continued development,” says Jarkko Leinonen, Hemsö’s Head of Asset Management Finland.
“Hemsö is characterised by long lease agreements and stable customers. We are very pleased that Hemsö is interested in investing in and developing health care and nursing homes in Turku over the long term,” says Jarkko Virtanen, Deputy Mayor, City of Turku.
The acquisition is conditional on a decision by the local executive and the city council, which is expected to be taken at the start of December 2018.