Altor buys Realia in SBO from Sponsor Capital

The transaction provides an exit for Sponsor Capital III, a 2007-vintage €175m vehicle, as well as minority shareholders Nordea and Finnish pension insurance company Varma.

Sponsor managing partner Kaj Hägglund told unquote" the sale followed a direct approach by Altor and that the timing of the exit made sense, given the age of Sponsor Capital III, which the GP expects to fully realise within a few years.

An Altor spokesperson said the GP is investing alongside management, while a debt package has been provided by Nordea and SEB.

For Altor, the buyout of Realia marks the first Finnish investment of Altor IV, the €2bn 2014-vintage vehicle the GP is currently deploying.

Previous funding
Realia Group is an amalgamation of real estate management companies acquired by Sponsor Capital, including Huoneistokeskus and Suomen SKV, which the GP acquired in 2003 and 2005, respectively.

Following the consolidation of the multiple companies in 2006 under the Realia name, Finnish Industry Investment took a 10% stake in the new group, in which Sponsor and Nordea were the largest shareholders. In the same year, Varma also joined the company's investor base.

Company
Headquartered in Helsinki, Realia is a real estate management and brokerage company consisting of Huoneistokeskus, SKV Kiinteistönvälitys, Huom! Huoneistomarkkinointi, Realia Isännöinti, and Realia Management in Finland, as well as Ober-Haus in the Baltic countries.

The company employs a staff of 1,600 and had turnover of €105m in 2015 with an EBITDA margin of around 11%.

People
Altor – Risto Siivonen (partner).
Sponsor Capital – Kaj Hägglund (managing partner).
Realia Group – Matti Bergendahl (CEO).

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• Topics
• Buyouts
• Exits
• Nordics
• Real estate
• Finland
• Altor
• Sponsor Capital
• Secondary buyout