18 January, 2016

Pangea Property Partners and Mrec establish strategic cooperation

Pangea Property Partners, with offices in Stockholm, Oslo and London, and Helsinki-based Mrec today announced that the two companies have entered into cooperation on a project basis in order to take advantage of the increase in cross-border property transactions in the Nordic region.

The cooperation is mutually beneficial, strengthening Pangea Property Partners in Finland and giving Mrec a broader Nordic and international reach. It will commence immediately and builds on an existing research cooperation.

“We now have the benefit of three offices in the Nordic countries as well as our recently opened office in London. This gives us a unique position as the leading corporate finance and advisory firm focusing on the property sector in the Nordic region and the Baltics. There is tremendous investor interest in the Nordic property market, and cross- border transactions are driving the market. This cooperation will enable us to serve our clients even better,” said Bård Bjølgerud, CEO and Partner at Pangea Property Partners.

Over the past years, international interest in the Nordic property market has increased significantly. Transaction volumes reached €40.4 billion in 2015, of which cross-border buyers accounted for €13.3 billion (33 percent of the volume), according to figures from Pangea Property Research. This represents an increase of more than
110 percent compared to the level of cross-border investments in 2014.

Mrec was established in 2010 and employ five experienced real estate professionals. As a result of the sale of its parent company, in 2014 key personnel acquired the company and changed the name to Mrec. To date Mrec has advised clients in more than 25 transactions with combined gross asset value of above €1 billion. For example, Mrec recently was the adviser to Hemfosa on its first investments in Finland and advised Ilmarinen on the establishment of Antilooppi with an initial portfolio of €400 million and a gross asset value target of €1.5 billion.

”We are delighted with this opportunity to widen our scope of services as well as further improve our contact network. We look forward to the close cooperation with the successful and likeminded Pangea Property Partners platform. With this arrangement we can provide our clients with an improved Nordic presence in cross-border and Pan-Nordic business,” said CEO Ville Mannila of Mrec.

Pangea Property Partners has played a key role in the increasingly active Nordic property market, for instance advising Starwood Capital Group and Citycon as buyers in two of the top three Nordic transactions of the past

year. In 2015, Pangea Property Partners advised on approximately 50 transactions with an underlying property value close to €7 billion.

“We are very impressed with the team at Mrec and the track record as an independent company. We feel that the match with Pangea Property Partners is excellent and that this is the perfect way for us to improve our presence in the Finnish market, an attractive and transparent market that has seen robust growth in transaction volumes, Mr. Bjølgerud said.

In addition to the entrance into the Finnish market, Pangea Property Partners recently announced the opening of a London office in response to increased interest in the Nordic property market, adding to offices in Stockholm and Oslo.

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