AXA's Italian fund buys core office in Helsinki for €41m

AXA Real Estate Investment Managers has completed the acquisition of a core office building in Helsinki on behalf of a fund for Italian investors for about €41 mln.

The vendor was Aberdeen Real Estate Fund Finland.

AXA was acting for the Caesar Fund, a regulated fund for Italian institutional investors launched the group´s Italian subsidiary, AXA Real Estate Investment Managers SGR.

A modern office property situated on Porkkalankatu 5, the building is in the district of Ruoholahti, a prime office location close to Helsinki’s central business district. It has close proximity to public transportation such as bus, tram and metro links as well as convenient access to nearby motorway, and will benefit from the ongoing extension of the Metro line to the West.

The multi-let asset comprises 12,000 m2 with 114 parking spaces. The property is currently fully let to high quality blue chip tenants, with recently renegotiated lease agreements in place. An extensive €13.3 mln renovation was undertaken in 2012 in order to upgrade its facilities.

The building has been awarded Leadership in Energy & Environmental Design (LEED) Gold certification.

The building is the first the fund has acquired in Finland and is consistent with it´s strategy to acquire well-let, core office buildings located on the periphery of central business districts in main European cities.

The fund’s last close was in October 2012, having raised €209 mln in equity from 13 Italian institutional investors alongside AXA Insurance companies, exceeding its original target, giving it a total potential fund size of around €420 mln once fully invested.

THE VENDOR
Aberdeen Real Estate Fund Finland is a close ended value-added fund customised for three institutional investors: Finnish pension-insurer Ilmarinen, Dutch pension group ABP and Danish pension fund ATP. The fund's property portfolio is worth some €450 mln.

Ari Anttonen from Aberdeen Asset Management: 'We are proud of the results. We transformed an old office building in a good location into a modern, eco-efficient property that blends beautifully into its environment. The total refurbishment of the centrally-located, nearly empty office building that was poorly adapted for its purpose was in the best interest of investors, the building's users and the entire area. We are additionally gratified that a strong, professional foreign entity acquired the property that was given a fresh start as a result of our efforts.'