Prisma Properties has agreed to acquire a retail property development in Pietarsaari, western Finland, from Finnish property developer and construction contractor Teräselementti. The transaction will be completed as a forward purchase, with an underlying property value of €7.7 million.
The property will comprise 4,900 m² of lettable area, corresponding to a transaction price of €1,570/m². The building will be fully leased upon completion, generating an annual rental income of €0.6 million. Assuming the reported rental income represents net rental income, the implied net yield is 7.8%.
The property is located in an established retail area in Pietarsaari. The coastal town is situated in the Ostrobothnia region of western Finland, approximately 100 kilometres north of Vaasa and 40 kilometres southwest of Kokkola.
Leading discount retailers will account for 89% of the rental income, while the weighted average unexpired lease term (WAULT) will amount to 9.7 years. The tenants have not been disclosed.
The seller, Teräselementti, will develop and construct the property in cooperation with Kiinteistökehittäjä Oy, a Finnish property development company involved in the project. Teräselementti will act as the construction contractor, while Kiinteistökehittäjä Oy participates as a development partner. Founded in 1964, Teräselementti is a family-owned Finnish construction company headquartered in Lempäälä, specialising in commercial and industrial buildings, steel structures and facade construction.
Construction is scheduled for completion in September 2027, when the transaction is also expected to close. The purchase price will be paid upon completion and closing.