German investment giant Union Investment Real Estate has acquired a mixed-use retail and office property in Helsinki, Finland.
The transaction price was around €148 mln – the largest deal Union has executed for the fund in Finland, to date.
The vendor was Sponda, the Finnish investment company.
Union made the purchase on behalf of its open-ended real estate fund, UniImmo: Deutschland.
Located at 19 Aleksanterinkatu in Helsinki’s city centre, the asset comprises around 8,300 m2 of retail and office space and benefits from being in the area with the highest footfall in the Finnish capital. There are currently 22 tenants, with around 60% of rental income derived from retail and 40% from office tenants. The building possesses a BREEAM Very Good rating.
Henrike Waldburg, head of investment management retail at Union Investment, said: ‘High street properties in excellent inner-city locations are an integral part of our investment strategy. After the recent purchases in Madrid and Copenhagen, this mixed-use property in downtown Helsinki is an excellent fit with our portfolio.
‘The prominent corner location at the junction of two important shopping and office streets ensures a safe long-term investment environment.’
Union Investment was advised by Cushman & Wakefield on commercial matters and by Merilampi on legal matters. The vendor was advised by CBRE and Krogerus.