Pontos Group has sold three logistic warehouses in Lappeenranta. The warehouses were included in the ReLog portfolio, covering ten properties, which Pontos acquired from NREP in the spring of 2019. The logistic warehouses located next to the Port of Mustola were acquired by Idän Liikenteenvälitys IL Oy, which operates in Russia, and the Finland-based MMK Kuljetus Oy. Both buyers operate in transportation and logistics.
Selling the properties continues Pontos’ divestment strategy for the ReLog portfolio. “We are pleased with selling the logistic properties to buyers, which can utilize their opportunities for business purposes. We are focusing our real estate investments on developing growing urban areas, and the divestment of the ReLog portfolio continues this strategy,” says Päivi Tomula, Investment Director of Real Estate at Pontos.
For the buyers, the properties provide possibilities for business expansion. Growth opportunities are pursued through stronger integration of logistics and transportation. “Acquiring the logistic warehouses supports our service offering. We are delighted that in the future we can handle orders all the way from the factory to the port – including transit storage. The freight industry is highly competitive, and transit storage allows us to offer a wider set of services. We operate with most forest companies, and having our own warehouses provides us and our clients with security of supply, which complements our services well,” says Marko Kilpiä, CEO and owner of MMK Kuljetus.
In 2019, the ReLog portfolio included ten logistic, warehouse and retail properties in different parts of Finland, with a total leasable area of 95,500 sqm. A few properties are still on the market. “People in growing urban areas need diverse services, and different spaces are a part of the lifecycle of these services. Due to the growth of online sales, logistic and warehouse properties have become popular and attractive investments. Pontos’ ReLog portfolio also includes logistic sites in Kouvola, Kotka, Seinäjoki and Lappeenranta, along with retail properties in Kajaani and Imatra. Pontos actively develops its tenant base, and the utilization rate of its spaces has increased,” Tomula states.
In March 2019, Pontos acquired NREP’s share of the NREP C1 real estate portfolio (ReLog portfolio), giving Pontos a 100% ownership of the portfolio. Pontos acquired 70% of the portfolio in 2014.