Sponda’s property development operations expanded strongly in 2008, and by the end of the year all the development projects in progress had been completed, apart from the City-Center complex. The biggest of the projects completed was the PortGate logistics centre in Vuosaari Harbour, the first phase comprising the 15,000 square metre Gate Centre and the logistics area which has a total area of 70,000 square metres.

 

Sponda reinforces its presence in the Russian market by establishing a second office in Russia in Moscow. Sponda increased its property holdings in Russia, and owned nine properties in Moscow and St Petersburg at the end of the year: four office properties, two shopping centres, two land areas and one logistics centre.

The Board of Directors of Sponda decided on a rights issue which took place 17 Jan 2007 - 2 Feb 2007. With the proceeds, approx. EUR 240 million net, Sponda refinanced part of the short-term credit raised to finance the Kapiteeli acquisition.

 

In March, Sponda sold properties outside Sponda's strategic focus for EUR 401 million to a fund established by Whitehall Street Real Estate Funds and Niam Nordic Investment Fund III. The proceeds were used to refinance part of the short-term credit raised to finance the Kapiteeli acquisition. Sponda will continue to manage the properties in the sold portfolio.

 

In March Sponda opened its own office in St Petersburg to support its strategic growth objectives in Russia and to strengthen its local market expertise. In the end of the year Sponda owned in Russia three office buildings, one logistics center and two land sites in St Petersburg and Moscow regions. 

The City of Helsinki endorsed the rezoning plan enabling Sponda to start the renovations on City-Center. The work began in May 2006.

 

Sponda and the Port of Helsinki signed an agreement according to which Sponda will be responsible for the construction of the logistics area at the new Vuosaari Harbour. The harbour will be opened for operation at the end of 2008.

 

14 December 2006 Sponda acquired the entire share capital of property investment company Kapiteeli Plc for approx. EUR 943 million. The transaction further strengthened Sponda's position as one of the leading actors in the Finnish property market.

On 1st June 2006 Kari Inkinen, MSc (Eng), was appointed as the President and CEO of Sponda.

The Helsinki City Council will look into the planning proposition for City-Center.

Marketing of multi-office complex Upseerin Avec in Espoo started. Leasable area is 30 000m².

 

New development project, Havis Business Center, started. It will be targeted for small and medium-sized enterprises.

Sponda sold the Itäkeskus Shopping Mall to the Dutch real estate company Wereldhave N.V. for 317 million €.

 

Sponda started City-Centers' reconstruction project. Estimated completion time is 2010 subject to completion of the maintenance tunnel built by the City of Helsinki.

Sponda acquired Castrum Oyj, a logistics real estate company, that was consolidated to Sponda starting 1 April 2000.

Sponda sold industrial and warehouse properties to Castrum for FIM 230 million. Sponda acquired a number of properties from Leonia Bank including the City-Center ("Makkaratalo") complex and Leonia's Unionkatu properties for FIM 1.6 billion.

Sponda sold the last foreign property remaining in its portfolio and Sponda's share was listed on the Helsinki Stock Exchange on 1 June 1998. The book value of Sponda's property portfolio at the time was FIM 3.4 billion.

Sponda completed liquidation of its equity holdings to concentrate on real estate investment, with retail and business premises in Greater Helsinki as its principal strategic focus.

 

In December Sponda increased its property portfolio in the Helsinki Central Business District by acquiring 14 properties for FIM 1.6 billion. At the same time Sponda divested the properties outside its prime commercial areas.

Sponda was transferred to the Ministry of Finance.

Sponda was formed by the Bank of Finland to take over the Finnish and foreign real estate properties held by the Skopbank Group together with its sizeable equity portfolio.