Barings Real Estate Advisers, formerly Cornerstone Real Estate Advisers, has acquired the office and retail building 'K25' in the Finnish capital Helsinki, acting on behalf of a German professional pension fund.
The property is located in the Helsinki CBD, at Kasarmikatu 25. It has a lettable area of around 4,800 m2, including ca. 3,600 m2 of offices, some 900 m2 of retail accommodation and around 300 m2 of conference and filing areas.
The vendor is an institutional investor, advised by the Finnish agency firm MREC Oy. The transaction price was not disclosed.
'This transaction is a good example of how we can take advantage of the expertise and networking of our local team to successfully identify and acquire assets for our clients, even in investment markets with intensive competition. Our European-wide focus is broadly based, extending from offices to retail and through to logistics properties in the core+ to value add classes of investment,' commented Gunther Deutsch, head of investment transactions - Europe at Barings Real Estate Advisers.
The property was previously occupied by ministries and public authorities, but is currently completely vacant. Barings said it would pursue a manage-to-core strategy for the building, which was constructed in neo-Renaissance style in 1890 and last modernised in 1998.
Barings' local team in Helsinki will take over the asset management, letting and revitalisation of the property. The complete refurb and tenant fit-out is expected to total around €34 mln.
This acquisition is the first foreign investment by Barings for a German institutional client. The acquisition of the property is also the pension fund's first investment in Finland, after commencing in Germany. It is actively preparing other purchases in Europe.
Barings already manages the Nordic Retail Fund in Scandinavia.
