Tessin Nordic Holding AB (publ) (NASDAQ: TESSIN) is launching a novel form of real estate investment that offers opportunities to Swedish retail investors previously available only to large institutional investors. In partnership with investors in its network, Tessin will directly own properties through a subsidiary, Tessin Properties AB, to give investors and Tessin direct access to revenue streams and value creation from the directly owned property portfolio.

Since 2014 Tessin’s digital platform has revolutionised how retail investors in their thousands are given opportunities to invest in secured loans to finance residential and commercial property development.

Tessin Properties will be launched on the same premise, where Tessin is digitalising the acquisition process and ownership to create a unique offer to its members to partner with Tessin in the direct ownership of properties. The Tessin digital platform provides the conditions for building a massively scalable property company that leverages the substantial capital resources of its membership, currently numbering more than 57,000 real estate investors.

“We are now taking the next step in our growth journey and creating the opportunity to directly own properties along with our large network of investors, something that used to be much easier said than done, and where opportunities for small investors were few and far between. Through Tessin Properties, we are giving our members and professional investors access to an efficient and profitable investment vehicle”, says Heidi Wik, CEO of Tessin Holding.

“This expansion of the business is fully aligned with our strategy of generating new revenue streams from operations that complement our core business. Access to a wide array of investment opportunities via our existing loan customers and our unique sourcing technology is a competitive advantage. Building Tessin Properties, which will own properties for the long term jointly with our investors and members, is a logical progression for both Tessin Nordic and Tessin Capital”, says Wik.

Since the beginning in 2014, Tessin has invested in building the most advanced digital platform on the market, which provides and automates large parts of the sourcing and investment process. Tessin was founded on the firm conviction that lending to property-related development projects could be streamlined and create scope for substantial scalability – and thus cost effectiveness – by digitalising the entire value chain. The Tessin digital platform will be the backbone of Tessin Properties’ processes.

“We are confident that this revolutionary initiative will also appeal to property owners all over Sweden. There are numerous owners interested in the ongoing sale of properties that are not a good fit with their portfolios There are also many smaller, local property owners who might be in generational transition without any natural succession in place,” Wik says, and continues:

“Over time, Tessin Properties will generate stable cash flows and predictable revenues, which creates value for our shareholders. We are already evaluating a number of acquisitions and our ambition is to close the first deal before the end of the year. Tessin Properties will be offering a range of instruments at various risk levels to our investors.”

Contacts

Thomas Ahlerup
Head of M&A, Investor Relations and Strategy
Tessin Nordic Holding AB (publ.)
+46-768966300 
ir@tessin.se

About Us

Tessin was founded in 2014 and is now a leading Nordic digital investment platform in the property financing segment, in terms of brokered capital. Tessin has more than 57,000 registered members on the platform. The business is based on a proprietary digital platform that links property developers seeking loan financing with investors seeking exposure to a high-return asset class with balanced risk and backed by collateral, primarily property mortgages.

At present, Tessin primarily offers construction and bridge loans to property companies and property developers. The loans are funded through the Tessin platform by a syndicate of private, professional and institutional investors who are given the opportunity to invest in secured real estate loans with attractive yields. Tessin currently operates in Sweden and Finland. Since its founding, the company has brokered about SEK 3.4 billion in financing to more than 300 different real estate projects. This has contributed making the building of around 5,000 residential units, as well as numerous commercial spaces and public buildings, a reality. Since the beginning, the equivalent of around SEK 2.3 billion has been repaid to platform members and the average annual return has been 8-9 percent.

Visit our website to learn more about Tessin.

Financial information about Tessin is available online at Tessin Investor Relations.

FNCA Sweden AB is the Certified Adviser to Tessin. Tel +46 (0) 8 528 00 399 Email info@fnca.se

Image Attachments

Fotograf: Christian Gustavsson

Attachments

Tessin forms digital property company in partnership with its members – Generating predictable revenues through a unique investment model

© Modular Finance, source Nordic Press Releases