Mutual pension insurance companies Varma and Elo have agreed on a transaction that involves the merger of the Jumbo Shopping Centre and Flamingo Entertainment Centre located in Vantaa, near Ring Road III. The value of the transaction is approximately EUR 600 million, and once it is finalised, Varma and Elo will each have a 50% share in the real estate.
The Jumbo Shopping Centre is visited yearly by some 12 million people, while Flamingo has around 4.7 million visitors. Together, they form the largest shopping and entertainment centre in the Nordics, with annual sales amounting to almost EUR 500 million.
“Combining holdings in Jumbo and Flamingo brings us advantages which help us to efficiently manage the real estate. The services offered by the properties to customers also support each other well. Joint ownership makes it possible to develop the entity even better to meet consumers’ needs and strengthen the shopping centres’ position in the changing competitive arena of the Helsinki region,” says Ilkka Tomperi, Director, Real Estate Investments, from Varma.
Measured in sales, Jumbo is Finland’s largest shopping centre.[1] Flamingo, which opened its doors next to it ten years ago, is known for its spa and wellness services, restaurants and specialist stores. The property also houses Break Sokos Hotel Flamingo, Finland’s largest hotel, measured by the number of rooms.
“Elo has been involved in developing Jumbo for more than 20 years. At first, it was considered to be a mall located in a remote area on Ring Road III, but today, the shopping centre formed by Jumbo and Flamingo is part of the City of Vantaa’s Aviapolis area development project, in which Aviapolis is being built into an urban hub attracting residents, entrepreneurs and tourists alike. In addition, plans have been made to build a tram line [NK1] that would connect the shopping centre with the nearby residential areas and the Aviapolis area even more closely,” says Timo Stenius, Director, Unlisted Investments, Elo.
The total lettable area of the properties is 140,000 square metres, and the number of tenants is approximately 170. The transaction will not affect the operations of the tenants; they will continue providing services in their premises in accordance with the existing agreements. Kesko and HOK-Elanto will continue as owners in their premises at K-Citymarket and Prisma on the first floor of Jumbo.
“Jumbo is one of Finland’s top shopping centres. Joint ownership is a logical continuation of developing the area,” Tomperi says.
“Flamingo’s offering that focuses on entertainment, restaurants and accommodation is a perfect complement to Jumbo’s commercial offering, and together, we can strengthen also that side to meet customers’ changing expectations,” Stenius says.
The transaction is subject to approval by the competition authorities.
Further information:
Ilkka Tomperi, Director, Real Estate Investments, Varma, tel. +358 50 379 1903, firstname.lastname@varma.fi
Timo Stenius, Director, Unlisted Investments, Elo. tel. +358 20 703 5359 firstname.lastname@elo.fi
[1] Finnish Council of Shopping Centers, statistics 2018