Regenero issues a senior secured bond of EUR 100 million


Keilaniemen kiinteistökehitys Oy, a wholly owned subsidiary of Regenero, a joint venture formed by YIT and HGR Property Partners, issues a senior secured bond of EUR 100 million on May 31, 2018. The bond matures in May 2021 and carries a coupon of 4.000% per annum. The bond issue proceeds will be used for repaying acquisition debt and property development, including renovation and refurbishment of the existing premises as well as commercial development leveraging on the overall development of the Keilaniemi area. 

On October 31st 2017, Regenero signed an agreement concerning the acquisition of Fortum’s former headquarter properties, including land plots and the companies that own the buildings, at Keilaniementie 1-3, Espoo. The total land area of the acquired properties was approximately 25,000 sqm with over 15,000 sqm of unused residential building right. Regenero’s aim is to develop high quality office premises at a location with excellent public transportation and car connections. 

The properties in question hosts one of the most well-known office buildings in the Helsinki Metropolitan Area, Fortum’s former 20-storey headquarters including the lower Keilalampi building in the rapidly developing Keilaniemi area, that has attracted the headquarters of some of the largest and most reputable companies in Finland. Regenero’s investment plans include a thorough renovation and modernization of the premises at Fortum’s former headquarters building. The buildings’ lettable area is 35,000 sqm comprising of modern office and retail space. After the refurbishment, Regenero is committed to pursue the LEED Gold certificate for the Fortum’s former headquarters building. As a signal of strong tenant demand, Accountor recently signed a 10-year lease for premises of 11,000 sqm. 

“We highly appreciate the confidence the institutional investors have indicated for the project. We are extremely pleased to be able to issue the first large real estate development bond in Finland”, says Kari Helin, a board member in Regenero. 

Danske Bank acts as the Lead Manager and Sole Bookrunner for the bond issue. Taaleri Capital acts as the financial adviser of the issuer. 

“We are particularly pleased that the bond product can be structured in this agile way to meet both the issuer's and highly professional investors' expectations. The outcome is an indication of successful intermediation and a clear vote of confidence for the bond product and the development project”, says Juha Mustonen from Danske Bank. 

“A real estate development bond is already an established financing instrument in the other Nordic markets. This successful issue is a sign that there is a clear interest in this kind of instrument both among developers and investors also in Finland”, says Vesa Heikkilä from Taaleri Capital. 

For further information, please contact:

Juha Kostiainen, Executive Vice President, Urban Development, YIT Corporation, tel. +358 400 721 475, juha.kostiainen@yit.fi

Kari Helin, CEO, HGR Property Partners, tel. +358 40 557 0570, kari.helin@hgrpp.fi

Juha Mustonen, Head of Debt Capital Markets Origination, Danske Bank, tel. +358 50 423 8774, juha.mustonen@danskebank.fi

Vesa Heikkilä, Managing Director, Partner, Taaleri Capital, tel. +358 50 355 4541, vesa.heikkila@taaleri.com

The issuer, Keilaniemen kiinteistökehitys Oy is a wholly owned subsidiary of Regenero Oy, the 50%/50% joint venture formed by YIT and HGR Property Partners. Regenero was founded in 2016 as a property development company focusing on large office real estate development projects enabling each of YIT and HGR to focus on their strengths in property development. In Regenero’s real estate development projects HGR is responsible for the project development work and the company’s operational work whilst YIT, the largest Finnish construction company, is responsible for construction and/or refurbishment activities. YIT and HGR Property Partners have worked together in implementing several successful property development projects over the last decade. Regenero has deepened this cooperation and laid the foundation for future growth initiatives.



This release is for information purposes only and is not to be construed as an offer to purchase or sell or a solicitation of an offer to purchase or sell with respect to any securities of Keilaniemen kiinteistökehitys Oy (the “Company”). The distribution of this release and the related material concerning the issuance of the notes under the above described bond issue (the “notes”) may, in certain jurisdictions, be unlawful or restricted by law. No actions have been taken to register or qualify the notes, or otherwise to permit a public offering of the notes, in any jurisdiction. Any offering material or documentation related to the notes may be received only in compliance with applicable exemptions or restrictions. Persons into whose possession this release or any such offering material or documentation may come are required to inform themselves of and observe all such restrictions. This release and any such offering material or documentation may not be distributed or published in any country or jurisdiction if to do so would constitute a violation of the relevant laws of such jurisdiction or would require actions under the laws of a state or jurisdiction other than Finland. In particular this release and any such offering material or documentation may not be distributed or published, directly or indirectly, in or into the United States, Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa or any other jurisdiction in which it would not be permissible to offer the notes and this release and any related material concerning the issuance of the notes may not be sent to any person in the aforementioned jurisdictions. The information contained herein shall not constitute an offer to sell or tender, or a solicitation of an offer to buy or sell any of the Company's securities including the notes to any person in any jurisdiction in which such offer, solicitation or sale or tender would be unlawful. Neither the Company nor the Lead Manager, or their affiliates or representatives accept any legal responsibility for any violation by any person, whether or not the persons contemplating investing in or divesting the Company's securities including the notes are aware of such restrictions.

The notes have not been, and will not be, registered under the United States Securities Act 1933, as amended (the “Securities Act”), or with any securities regulatory authority of any state of the United States. The notes may not be offered, sold, pledged or otherwise transferred directly or indirectly within the United States or to, or for the account or benefit of, U.S. Persons (as defined under the Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable state securities laws.

This release does not constitute an offer to the public and no prospectus has been or will be approved in the United Kingdom in respect of the notes. Therefore, in the United Kingdom, this release and any offer materials relating to the notes may only be communicated to persons in circumstances where the provisions of Section 21(1) of the Financial Services and Markets Act 2000, as amended, do not apply to the Company and is solely directed at persons in the United Kingdom who (a) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (b) persons falling within Article 49(2)(a) to (d) of the Order, or other persons to whom it may be lawfully communicated (all such persons together being referred to as “relevant persons”). This release is directed only at relevant persons and any person who is not a relevant person must not act or rely on this release or any of its contents.