Nordic private equity real estate investor Slättö is acquiring an office property in Finland’s capital to convert into hotel apartments.
Slättö is buying the property in Helsinki from Catella Real Estate for an unspecified amount and plans to repurpose the building into a 99-room aparthotel which will be leased to hospitality company Bob W.
Work is expected to begin in the current quarter and the hotel is expected to open to the public in the second quarter of 2025.
Catella Real Estate originally acquired the property in 2011 for specialised alternative investment fund Catella Scandia Chances.
Axel Bertram, portfolio manager at Catella Real Estate, said: “The sale of the property as a development project took place in a challenging market environment, even in Finland.
”Coupled with ongoing rental income during the operational phase, the sale profit yields a very favourable return on investment. The fund’s liquidity position is strengthened, enabling portfolio optimisation.”
Erik Möller, the head of hotels at Slättö, said: “The European and Nordic hotel markets are showing a strong performance, as travelling for short and long periods of time is increasing. “There are significant value-creation opportunities in apartment-hotel and long-stay properties that have high design standards and technology-driven operations.”
Slättö said the acquisition is its second transaction in the Finnish hospitality sector.
Emilia Malmi, CEO of Northern Europe at Bob W, said: “We are excited about Bob W’s expansion into Helsinki’s Kamppi district, a key location. The property will offer a unique, modern, high-quality hospitality experience. This enhancement of our partnership with Slättö not only boosts our presence in the Nordic region but also cements our position as a market leader.”
Ilkka Salminen, Slättö’s country head in Finland, said: “We are very pleased to add another property to our partnership with Bob W. With two assets in the central business district of Helsinki, Slättö’s portfolio is an attractive investment proposition.”
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