Finland’s largest pension fund Keva has agreed a deal to acquite city-centre properties owned by the student union of the University of Helsinki.
Ylva, a real estate company owned by the student union, organised a competitive bidding process at the start of this year.
The assets being sold include the Old Student House, Kaivotalo, Citytalo and the Grand Hansa complex, including the New Student House. The purchase price was not disclosed.
Keva’s co-investors are Mrec Investment Management and HGR Property Partners, which will be responsible for management of the properties and development after the transaction.
Keva said it was committed “to the active development of the centre of Helsinki”.
Carl-Henrik Roselius, Keva’s senior vice president, real estate investments, said: “The properties now being purchased have a lot of development potential to increase their attractiveness and improve transport connections. Together with our partners, we develop commercially viable premises for everyone. We want to build bright, safe and easily accessible indoor corridors throughout the city centre block for the use of city residents.”
Roselius added that the revitalisation of the centre of Helsinki “needs action”, adding: “We believe that we have the courage, professionalism and resources to make the Kaivopiha area a pleasant block that serves everyone.
“The purpose of Keva’s investment activities is to ensure the financing of the pensions of municipal and wellbeing services county personnel now and in the future. For that, investment returns are needed, and owning and renting real estate is one way to do this.”
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