Prisma Properties invests €65m in grocery real estate in Finland

Prisma Properties has boosted its presence in the Finnish grocery retail sector through three separate acquisitions totalling €65 mln.

K-Citymarket, Kajaani

These deals add eight properties with approximately 28,000 m2 of rentable space to Prisma's portfolio, primarily focusing on grocery stores and quick-service restaurants.

The acquired properties generate a total annual rent of €4.9 mln and have a long weighted average unexpired lease term (WAULT) of 11 years.

Prisma is acquiring two major grocery properties in Kajaani and Hämeenlinna, fully leased to Kesko Oyj under its K-Citymarket brand. This transaction, with seller Corum (a French asset management company), will increase Kesko's contribution to Prisma's rental income from 7% to nearly 13%.

A second transaction involves three grocery properties in Espoo, part of the Helsinki Metropolitan Area. These were acquired through a sale-and-leaseback agreement, meaning the seller immediately signed long-term lease agreements. This move further strengthens Prisma's grocery focus and introduces a new major grocery tenant.

Finally, Prisma has acquired three fully leased properties for quick-service restaurants (QSR) and other services in high-traffic locations in Paimio, Lahti, and Imatra. Kesko Oyj was the seller for these properties.

Overall, these acquisitions are projected to increase the grocery segment's share of Prisma's portfolio to 48% and are expected to boost the company's earnings capacity per share by 5.50% compared to its most recent financial report.

The acquisitions are being financed through a mix of secured and unsecured loans.

Tom Hagen, deputy CEO and head of Transactions at Prisma Properties, commented: “We are very pleased with these transactions, which clearly strengthen our position within grocery. Through the acquisitions, we add more well‑located grocery properties with long lease terms and stable cash flows, while at the same time deepening our cooperation with Kesko and initiating new partnerships with strong grocery operators. We are also establishing a presence in the QSR segment in Finland through a smaller acquisition at very attractive levels.”

Borenius, Hannes Snellman, Capton Partners, PwC, Borenius, Colliers and Naava Partners advised on the transaction.