German fund manager Union Investment Real Estate has purchased an office building in Helsinki, Finland, for around €50 mln from local player OP Life Assurance Company.
Comprising around 5,700 m2 of rental space across five stories in Eteläesplanadi 12, the property was built in 1899 and most recently upgraded in 2012. It presently has an occupancy rate of around 80%, including the Finnish Ministry of Justice, a law firm and software company, Vainu.
The firm made the acquisition on behalf of its UniInstitutional European Real Estate fund, as part of its core Nordic strategy.
Martin Schellein, head of investment management Europe at Union Investment, said: ‘This office property facing Esplanadi park represents a rare opportunity to invest in the heart of Helsinki’s central business district.
‘We believe that the multi-tenant situation of the property and the ongoing dynamic rental growth in the city’s core locations will make it possible to steadily increase the building’s earning power through active asset management. At the same time we will continue to monitor the Nordic markets closely for further acquisitions.’
The acquisition brings Union Investment’s portfolio of office properties in the Finnish capital to five, worth a combined total of around €500 mln.
In the transaction, Union Investment was advised by from Merilampi Attorneys Ltd. OP Life Assurance was advised by Catella Finland.