PARMACO IS A FINNISH COMPANY THAT RENTS HIGH-QUALITY MODULAR BUILDINGS
Parmaco designs, builds and rents pre-fabricated modular buildings primarily to municipalities in Finland and Sweden for use as day-care facilities, nursing homes, school buildings and office spaces.
Asset backed: At acquisition in 2018, Parmaco had 139k sq m of movable buildings in its portfolio. There is an opportunity to deploy around €250m of follow-on capex aimed solely at growing the size of this portfolio to meet forecast demand.
Essential industry: Finland and Sweden have some of the highest standards for education provision in Europe; about 95% of Parmaco’s rental income comes from municipalities renting schools and day-care centers. High levels of inter- and intra-municipality population movement have resulted in volatile demand for schools and day-care centers, and population volatility combined with the already high levels of leverage in these municipalities forms the basis of strong current and forecasted demand for flexible building solutions.
Transformational change: Terra Firma aims to re-position the accounts and strengthen the balance sheet, allowing an attractive and stable long-term equity yield for Parmaco. Investment in reporting and key functions will also strengthen the platform.