Ilmarinen has bought its first real estate asset in Germany.

The Finnish pension insurance company said it bought an office and hotel property in Berlin with a French institutional investor.

Ilmarinen has roughly a 50% stake in the property.

The Königstadt Carree property, close to Alexanderplatz, is let to 12 tenants including Mercedes Benz Bank and an Ibis hotel operated by Accor Hotels.

Portfolio manager Mikko Antila said: “Solvent tenants and long-term rental agreements make this a profitable and secure investment.”

Schroder Real Estate, which advised Ilmarinen, will handle asset management of the 26,000sqm property.

Antila said the German capital was currently has one of the most attractive real estate markets in Europe. 

“Berlin has established itself as the European hub for creative industries and digital economy,” he said.

“That makes the city very attractive to real estate investors, too. In addition, the vacancy rates of office premises in the city have decreased steadily, and rent levels have remained stable.”

Ilmarinen recently bought a 50% stake in a second Brussels office property.

The firm bought the company holding half of the Covent Garden office scheme in the Belgian capital for an undisclosed amount.

Hannover Leasing sold the 50% stake to Ilmarinen but will continue to manage the asset.