Finnish listed property company Sponda said it has signed an agreement with mutual life assurance group Suomi to acquire the Fennia Quarter located in Helsinki's Central Business District. The transaction amounts to a total of EUR 122 mln, including EUR 100 mln in cash and the remaining EUR 22 mln to be paid with the issue of 5.5 million of Sponda shares at a price of EUR 4 per share.

Following the deal, Suomi will hold around 1.94% of Sponda's share capital, which encompasses a total of 283 million shares.

The Fennia Quarter offers a total of approximately 25,500 m2 of office space and 14,200 m2 of business premises. The vacancy rate stands at 9.7% while its net initial yield amounts to 5.7%. Major tenants in the building include Finland's Slot Machine Association, Finnkino and the City of Helsinki.

Sponda said that the deal comes in anticipation of 'a positive turn' forecast for the Finnish property market which is expected to see rents rise in the central Helsinki area over the coming months.

Advium Corporate Finance acted as Sponda's financial advisor in the transaction.