Allianz Real Estate buys half share in Finnish mall

Allianz Real Estate has acquired a 50% stake in the Kamppi shopping center in Helsinki from the Nordic Retail Fund, a property fund invested in a portfolio of retail assets in Finland and Sweden and managed by Cornerstone Real Estate Advisers.

Nordic Retail Fund will continue to hold the other 50% stake. Although terms of the transaction were not disclosed, Cornerstone said it represents the largest single deal this year in Finland.

Protego Real Estate, now Cornerstone, acquired Kamppi for the Nordic Retail Fund in March 2008 from UK investor Boultbee for €452.5 mln. The deal reflected a net initial yield of 4.5%, increasing to 6% in 2012.

Kamppi is one of the top five shopping centers in Finland. It was constructed in 2006 in the central business district of Helsinki and benefits from high footfall, being located on top of the main inner city transportation hub with underground, tram and bus lines crossing here.

The shopping center features around 156 stores, restaurants and cafés across a total retail area of some 34,000 m2. It generates a net operating income (NOI) in excess of €23 mln.

Cornerstone said it had achieved double-digit growth in both sales and NOI since acquiring Kampii in 2008.

'This transaction represents a rare opportunity to invest in a well-established and prominent shopping center in Finland, as the majority of prime centers are mostly owned by end-investors or in long-term ownership structures,' commented Stefan Brendgen, CEO of Allianz Real Estate Germany.

Cornerstone as the asset manager of Kamppi will continue to manage the shopping centre. In this transaction Allianz Real Estate was advised by Berwin Leighton Paisner and Jones Lang LaSalle. Cornerstone was advised by Leimdorfer Finland as selling agent and Clifford Chance London as lead counsel.

The deal comes within days of Allianz's disposal of an office building in Stockholm. The German insurer Allianz has sold an office building with a value of €180 mln to AMF Fastigheter, the real estate arm of Swedish pension fund AMF.

The building has a rentable area of more than 21,000 m2 and also comprises retail and residential units. The main tenant is accountancy firm EY.