Finnish firm creates Nordic giant

Sponsor Capital is putting pressure on rivals by creating the biggest real estate advisory and management firm in Scandinavia.

Sponsor Capital, a private equity group from Finland, has revealed plans to combine two companies to create the largest property services firm in the Nordic region.

The company is combining Huoneistokeskus and Suomen SKV to form Realia Group, which could be floated within a year provided market conditions were favourable.

The move comes just a year after Sponsor acquired SKV and three years after it took control of Huoneistokeskus.

The new real estate agency and management business will operate around 200 branches across Finland and employ as many as 1,400 staff.

Although operating under a new group name, the two merged companies are retaining their brands and will continue to serve existing customers.

Risto Kyhala, managing director of Huoneistokeskus will head up the larger practice. Sponsor’s managing director Matti Suutarinen said: “The new group structure is a natural next step towards growth and internationalizing.”

The company will operate three divisions: real estate brokerage, which Huoneistokeskus and SKV operate, commercial properties, and housing management.

Kyhala said real estate brokerage would continue to serve its Finnish customers under the two brands, and that housing management would be a significant area of future growth and investments.

The commercial services division will unite the former Huoneistokeskus commercial services and SKV enterprise services under one management. It covers commercial real estate brokerage, renting, valuation and services businesses.