Union Investment has entered the Finnish residential market with the acquisition of the Hyperion development project in Helsinki.

Union Investment, on behalf of its open-ended UniImmo Deutschland real estate fund, has bought the Hyperion project for €74m from Scandinavian developer Skanska in a forward funding deal.

The planned 10,537sqm residential tower will comprise 216 residential units across 24 upper storeys.

The project is expected to be completed in the second quarter of 2023.

Martin Schellein, the head of investment management Europe at Union Investment Real Estate, said: “We want to develop residential investments into a strong pillar in our portfolio alongside offices, logistics, hotels and retail. The economically stable Nordics, countries where we have been investing in commercial property for many years, offer attractive framework conditions for residential investments, and especially development projects.

“The Hyperion project with its high sustainability standards and central location in an established Helsinki sub-market can serve as a role model for further residential investments. We are very pleased that we were able to secure this first large residential investment in the Nordics for our UniImmo: Deutschland fund.”

Tuomas Vaarasalo, development project director at Skanska, said: “We are pleased that our long-term development work has culminated in this high-quality residential building project that is now moving to the construction phase.”

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