Union Investment has agreed to acquire the planned Urban Environment House office property in the east of Helsinki via a forward purchase agreement. The property will offer some 27,500 sq m of rental space and is being constructed in the Kalasatama submarket, an inner city development zone. Completion is scheduled for summer 2020. The vendor and future tenant of the property is the City of Helsinki, which has signed a 20-year fixed lease for the entire building. Following completion, the space will be used by approximately 1,500 employees of the City of Helsinki. The purchase price of the planned building is EUR 165 million. The Urban Environment House is Union Investment’s largest single property investment in Finland to date. The property will be added to the portfolio of open-ended real estate fund Unilmmo: Europa.
“The Nordic cities, such as Helsinki and Stockholm, generally offer very stable conditions for long-term investment in office property,” said Martin Schellein, head of Investment Management Europe at Union Investment Real Estate GmbH. “In this region, we are also looking beyond the established business districts to modern urban development areas that have the potential to become important inner city submarkets in the near future.” Development of the Kalasatama submarket is expected to be completed by 2030. The Urban Environment House development is one of the first office new builds to be constructed on the site. The urban character of the district is reflected in its mix of planned residential and retail properties.
The 27,500 sq m of rental space in the Urban Environment House office property will be spread over the ground floor and seven upper floors. A lobby, a café, exhibition areas and a restaurant are planned for the ground floor. Kalasatama subway stop is around 100 metres from the new building. The property is expected to receive a BREEAM rating of “Excellent” as proof of its high sustainability credentials and construction quality. There will be 75 car parking spaces and 590 bicycle spaces in the building’s underground car park. Among the other sustainability features are a photovoltaic system on the roof and a wide selection of plants in the interior of the building to create a healthy indoor climate for users.