Scandinavian CapMan Shuffles Fund

Date: September 2018

Location: Scandinavia

Seller: Investor CapMan has reset its Scandinavian hotels fund, with disposals and lease extensions.

Leases with Scandic and Lapland Hotels have been renegotiated, taking the fund’s average lease length to 19.2 years. A seventh hotel, Original Sokos Hotel Royal in Vaasa was sold to KPO-Kiinteistöt Oy.

Buyer: It has sold six Finnish hotels to French investor Corum for EUR72.4m.

 

CapMan Hotels Fund has strengthened co-operation with its tenants Scandic and Lapland Hotels and extended the average maturity of its lease agreements to 19.2 years. The fund has also exited seven assets that were outside its core focus.

CapMan Hotels Fund and hotel operators Scandic and Lapland Hotels have signed new lease agreements or extended existing agreements during 2018 for a total of ten properties in Finland. Following the new agreements, the maturity of the entire portfolio was extended to 19.2 years.

The fund has also exited six hotel properties located in Turku, Kemi, Rauma, Saariselkä, Kuusamo and Vuokatti to a French real estate investor Corum Asset Management. The hotels comprise 870 rooms combined and have long-term leases with Scandic and Holiday Club. The purchase price for the portfolio was 72.4 MEUR. Additionally, the fund sold Original Sokos Hotel Royal in Vaasa to KPO-Kiinteistöt Oy.

“The new contracts further strengthen our co-operation with leading hotel operators as well as the return profile of our fund. Through Scandic, we are actively present in both business and leisure travel throughout Finland.

In addition to hotels in Oulu and Tampere, our fund’s Lapland Hotels family now includes a hotel in Kuopio, as the operator acquired the hotel operations for Cumulus Kuopio from Scandic. We continuously invest in our assets and develop concepts in co-operation with our tenants. We have centred our portfolio around assets supporting our core strategy and the recent transactions are a continuation of this process,” comments Pirjo Ojanperä, Partner responsible for the CapMan Hotels Fund.

CapMan Hotels RE Ky fund was established in 2008 and it currently manages 30 hotel properties in Finland and Sweden. The fund includes, among others, the hotel properties of Crowne Plaza and GLO Hotel Art in central Helsinki.

CapMan is a leading Nordic private asset expert with around €2.8 billion in assets under management.

THPT Comment: Interesting move from this hitherto not known investment player.

First Seen: CapMan website