Sponda a commercial real estate property investor, today lost about 34% of its value.
Not as a suprise for the readers of this blog as it has been said quite many times that there were a glut of commercial properties in the Helsinki area as well as other major cities. On top of that it was all made on very big loan that need to be refinanced and which undoubtdelly will have an impact on banks.
Commercial real estates were poping up at a very fast pace, on the way creating employment and giving an additional false security of a strong GDP growth. The party ended, the money disappeared...
So nothing new in any case except...the state involvement.
Indeed the state pension fund had quite much invested in this company, in fact it represents the number 3 and 4 investors.
So today the state pension fund and ilmarinen pension fund lost together about 1.500.000 times 1,20 euro, so about 2 million euro in the first 20 seconds of trading.
2 million euro that doesn't seem much ....but put in perspective to the number of people retiring this year or so, it is a lot of wealth...
Forgot to mention ... the State is the number 1 investor with 34% holding which represents about 40 million shares...so today the state lost about 50 million euro...indeed there is a need to compensate that...raising tax? no they wouldn't do it, would they?
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