Danish property group BPT adds Evli arm for Baltic business

12.10.2011, 12:29

Copenhagen-headquartered BPT Asset Management has taken over Evli Property Investment from Finnish Evli Bank Oyj, reports www.news2biz.com

The new partnership means BPT/Evli will become the third largest real estate asset manager in the region in terms of assets under management. The combined real estate assets under management in the new partnership total approximately EUR 1.5bn and are located across Finland, the Baltics, Russia, Poland and Northern Germany. They cover primarily office, retail, logistics and health care assets.

As a consequence of the transaction, Evli Property Investment including its offices in Helsinki and St Petersburg (staff counts 7 and 5, respectively) becomes a daughter company of BPT, creating a property and asset management team of more than 30 staff. The takeover includes management of its three real estate funds, founded in 2005 and 2006. Evli will in return become a major shareholder in BPT Asset Management.

Evli Property Investment's current Managing Director Petteri Nurminen will enter into BPT's executive group. In addition, Evli gets two seats on BPT's Board of Directors. BPT founder Lars Ohnemus and Mikael Hyttel Runegaard Thomsen remain in their respective positions as Chairman of the Board and as CEO of BPT Asset Management A/S.

BPT will as part of the transaction look to separate its internal asset and property management functions in order to create an even stronger focus on value creation in both areas.

The expanded geographic scope of operations combined with the extended real estate asset and property management expertise means BPT will have a uniquely strong platform from which to service investors on an international level going forward.

"The strategic alliance with Evli and the acquisition of the Evli funds makes BPT the only real estate asset manager that can offer clients a uniquely broad real estate investment platform in the Nordic and Baltic region, ranging from mature markets like Finland and Northern Germany to emerging markets like Russia and the Baltic States, says Chairman of the Board and founder of BPT Lars Ohnemus to news2biz.

"A main goal for this alliance with Evli is to attract international capital to the Nordic and Baltic property scene. Until now only regional players have found a way to the market," says Lars Ohnemus.

However, the present standstill and lack of suitable objects on the Baltic real estate market presents the largest obstacles to major Baltic investments.
"Our Baltic Opportunity Fund made its first acquisition in August, in Tallinn. Our people are working hard at this, but still it is very difficult to find objects that are acceptable to us as far as location, quality and tenants are concerned," says Ohnemus.

BPT is an international real estate asset manager specialising in Northern and Eastern Europe with approximately EUR 1.1bn in assets under management. The portfolio consists of more than 1 million square meters of prime commercial real estate. A key part of the investment philosophy is to be present where the investments are made. BPT is headquartered in Copenhagen with local offices in Berlin, Warsaw, Vilnius, Riga, Tallinn and Moscow. The company has approximately 100 employees.

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