Stock Exchange Releases

Technopolis Acquires a Campus in Vilnius and Upgrades Its Future Outlook

TECHNOPOLIS PLC      STOCK EXCHANGE RELEASE              March 15, 2013, at 10:20 a.m.

Technopolis Acquires a Campus in Vilnius and Upgrades Its Future Outlook

Technopolis has signed a deal to acquire a new office campus in Vilnius, Lithuania. Technopolis will upgrade its future outlook for net sales and EBITDA growth from 9 – 12% to 14 – 17% for 2013, subject to the successful closing of the deal. The acquisition is in line with Technopolis’ international growth strategy, which is focused on the Nordic-Baltic region. The purchase price which includes the completion of the third building is EUR 61.0 million. The company expects to close the deal by May 1, 2013.

The campus has good transportation connections and services. It is located less than 3 kilometers from the CBD right next to a planned new ring road. The campus includes three different buildings totaling 42,300 sqm in rentable space with additional growth potential of 30,000 sqm. One of the buildings is due for completion in October, 2013. The growth of office stock in the Vilnius office market has been moderate and the market vacancy rate for B class offices is approximately 11%. Rent levels have been rising and average net rents are currently 8 – 14 euros per sqm.

The net market yield of the investment is 8.2%. The net initial cash flow-based yield is 7.6% and the stabilized yield is expected to reach at 9.3%. Two of the campus buildings have a 100% financial occupancy rate with long-term leases and the building under construction has a 46% pre-let rate. The campus customers include companies in the banking, consulting and engineering sectors.

Lithuania is the biggest economy in the Baltics and geographically well positioned, bordering Poland, Latvia, Belarus and Russia. Its economy is expected to grow 3.1% in 2013. The country is expected to enter the Eurozone in 2014 and it has pegged its currency, the litas, to the euro since 2002. Since the financial crisis the country has become popular in near-shoring among the financial and IT sectors.

Further information about the campus:

Technopolis Plc

Keith Silverang
Tel. +358 40 566 7785

Sami Juutinen
Director, International Operations
Tel. +358 40 484 7487

Technopolis Plc is a listed real estate company that specializes in leasing space and providing services. Its core business idea is to combine business support services with modern, flexible, multi-user business environments. There are approximately 23,000 people and almost 1,400 companies and organizations in Technopolis premises in Finland, Russia, and Estonia. The company’s net sales for 2012 totaled EUR 107.3 million and its EBITDA was EUR 55.8 million. The Technopolis Plc share (TPS1V) is listed on NASDAQ OMX Helsinki.

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