Altor buys Finnish real estate management business, Realia Group, from Sponsor Capital
Realia Group, the largest service provider in real estate management and brokerage services in the Nordic countries, is to be acquired by Altor Fund IV (Altor). The Nordic private equity fund acquires the company from the current majority owners Sponsor Fund III, Nordea, and Varma. The sale and purchase agreement was signed on June 1, 2016.
Realia Group brings together a broad spectrum of competencies in real estate management and real estate brokerage services in Finland and the Baltic countries. Operations are conducted through the subsidiaries Realia Isännöinti, Realia Management, Huoneistokeskus, Huoneistomarkkinointi, and SKV Kiinteistönvälitys in Finland, and Ober-Haus Real Estate Advisors in Baltic countries.
”I am looking forward to working together with the new owner Altor, and I strongly believe that the collaboration will benefit the entire Realia Group and its subsidiaries. We have taken significant steps in developing Realia Group together with Sponsor Capital, Nordea, and Varma over the last years. This development will now be further strengthened as Altor shares our view of how to build high quality real estate management and real estate brokerage services,” says Matti Bergendahl, CEO of Realia Group.
”We have been building and developing Realia Group and its subsidiaries for a long time, and the Group with all its brands is very close and important to us. We decided this spring that Realia Group should continue its development in the next strategic phase supported by a new owner, and we are delighted that the new owner will be Altor, a company we know well,” says Kaj Hägglund, Managing Partner at Sponsor Capital.
”We have followed the development of Realia Group closely for a long time, and real estate management and real estate brokerage services are in a highly interesting developmental stage in Finland and other Nordic countries. Realia Group has very well-known brands in both real estate management as well as real estate brokerage services in Finland and Baltic countries. We want to continue developing these services together with the management and personnel of Realia Group towards the Group’s vision: For better living and real estate wealth,” says Risto Siivonen, Partner at Altor.
The transaction will require an approval from the Finnish Competition and Consumer Authority, and it is expected to be completed by the end of June. The transaction value will not be disclosed.
For further information, please contact:
Kaj Hägglund, Managing Partner, Sponsor Capital, +358 400 403 046
Sponsor Capital is a Finnish private equity firm founded in 1997. The firm makes mainly majority investments in Finnish mid-sized companies that have an excellent management, stable market position and predictable cash flow. Sponsor Capital operates responsibly and long term as well as in a strongly profit-oriented mode and believing in management’s entrepreneurial spirit. Large Finnish institutions invest their capital through Sponsor Capital.
Realia Group is the biggest service provider in real estate management and real estate brokerage services in Nordic and Baltic countries. Realia Group consists of Huoneistokeskus, SKV Kiinteistönvälitys, Huom! Huoneistomarkkinointi, Realia Isännöinti, and Realia Management in Finland, and Ober-Haus in Baltic countries. Annual revenues of Realia Group is approximately 100M€, and the Group employs some 1,600 persons. www.realiagroup.fi
Since inception, the family of Altor funds has raised some EUR 5.8 billion in total commitments. The funds have invested in excess of EUR 3.4 billion in more than 40 companies. The investments have been made in medium sized Nordic companies with the aim to create value through growth initiatives and operational improvements. Among current and past investments are Lindorff, Carnegie, Palodex, Helly Hansen, Dustin, Byggmax and Sats-Elixia. For more information visit www.altor.com.
Source: Sponsor Capital Press Release