08 October 2018

Carey Olsen advises on Terra Firma's purchase of Parmaco Group

Carey Olsen's corporate team in Guernsey has advised leading European private equity firm Terra Firma on its proposed acquisition of Parmaco Oy (Parmaco) from Finnish private equity group MB Funds.

Parmaco is a fast-growing Finnish real estate company which specialises in building and renting high quality buildings for schools, day care providers and nursing homes. Over the last four years the company has grown its asset base six-fold and now boasts a new build portfolio spanning more than 200,000 square metres of space. Over the next three to five years its strategy is to double in size again to over 500,000 square metres.

Working alongside Freshfields Bruckhaus Deringer as UK legal adviser to Terra Firma, the Carey Olsen team advised on the establishment and regulation of Terra Firma Special Opportunities Fund IV, the Guernsey closed-ended fund through which Parmaco was acquired, and all Guernsey legal aspects of the transaction. The team was led by partner Tom Carey with assistance from senior associate John Scanlan and associate Kristina Mikhaylova.

In the transaction, Terra Firma Special Opportunities Fund IV – the firm's latest special opportunities fund – has partnered with Metric Capital, the pan European private capital manager, and Sun Hung Kai & Co Limited, a leading investment firm headquartered in Hong Kong. The deal is expected to be completed by the end of the year.

Mr Carey said: "We are delighted to have assisted Terra Firma on the establishment of its latest special opportunities fund and its subsequent agreement to acquire a fast-growing and exciting business such as Parmaco."