Union Investment acquires planned office building in Wood City district of Helsinki
• One of Finland’s first projects to be aligned with the EU taxonomy
• Office building with timber frame
• Already fully let to IT security firm WithSecure
Union Investment has acquired a planned timber-framed office building in Helsinki from leading Finnish construction company SRV via a forward funding deal. It is one of the first projects in Finland to be aligned with the EU taxonomy. The acquisition is being made on behalf of institutional real estate fund UniInstitutional European Real Estate. The purchase price is around EUR 58 million.
“The Nordic countries are a vital part of our investment strategy, which is why we have steadily expanded our activities in this region in recent years. The project in the Wood City district meets very high sustainability criteria and is located in an up-and-coming city centre location in Helsinki. It is therefore a perfect fit with our Finnish portfolio.”
Martin Schellein, head of Investment Management Europe at Union Investment Real Estate GmbH.
The planned office building is located in the Wood City district of Helsinki’s Jätkäsaari submarket, which has been undergoing development as a residential and office location since 2009. The area is due to be completed by 2030 and will include the city’s new cruise ship terminal. Helsinki’s important office submarket of Ruoholahti is also just 500 metres away and offers a metro connection to the city centre, as well as shopping opportunities.
The seven-storey office building with 6,036 sq m of rental space and 30 parking spaces is scheduled for completion by June 2024. It is expected to achieve LEED Platinum certification. The building is already fully let on a ten-year lease to IT security firm WithSecure, which intends to make the property its new headquarters.
“This project is an excellent example of the project development portfolio we’re developing for investors: stable cash flow, a state-of-the-art HQ building and environmentally friendly construction that also minimises the owner’s carbon footprint over the ownership period. With this transaction, we’re gaining one of Europe’s leading property investment managers, Union Investment, as a new partner. Our aim is to expand our cooperation with both our existing and new investors going forward,” says Tuomas Kokkila, Head of Transactions at SRV.
Union Investment was advised on legal aspects of the deal by Merilampi Attorneys Ltd.
For Union Investment Institutional Property GmbH