Prisma Properties acquires Finnish grocery retail assets from Kesko

Swedish real estate developer Prisma Properties has finalised a deal to purchase ten grocery retail properties in Finland from Finnish grocery chain Kesko.

K-Supermarket

The acquisition, valued at around €59 mln, involves a sale and leaseback arrangement under which Kesko will continue to operate these stores.
The portfolio encompasses about 23,500 m2 of rentable space, fully leased back to Kesko. These properties will generate an annual rental income of over €4 mln, with an average remaining lease term of 11.6 years.
The acquired properties feature K-Citymarket, K-Supermarket, and K-Market store formats, strategically located across Finland, including Sastamala, Jyväskylä, and Lappeenranta, with a strong presence in the southern and southwestern regions. The transaction is slated to close on December 1st.
The purchase will be funded through a mix of loans and equity.
Tom Hagen, head of Transactions at Prisma Properties, said: "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 bn (€97 mln)".
Nuutti Rantatupa, VP of store sites and retailer operations at Kesko's grocery trade, added: "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 centres while maintaining our broad store network through long-term leases that enable remodelling across all locations".
This divestment is a strategic move for Kesko to focus its investments on new store sites in areas with strong consumer demand and population growth. The transaction will boost Kesko's cash flow, which will then be reinvested in developing new, strategically important store locations.
Kesko invests €200-250 mln annually in its grocery store network, both for new store openings and existing store remodels. The company categorises its owned operational properties as either "strategic" or "basic," with strategic properties accounting for roughly half of its portfolio. While Kesko retains significant ownership of its strategic properties, the divested properties fall into the "basic" category, meaning they are suitable for sale and leaseback. These divested properties are relatively new, and most have already been updated with modern refrigeration systems, with the remaining to be updated by 2030.
Castrén & Snellman Attorneys, PwC and Naava Partners advised on the sale.