Capman Nordic Real Estate fund has signed an agreement to sell a hotel property on Yrjönkatu 13 in central Helsinki to a fund managed by Deka Immobilien. Capman is converting the property into a 153-room luxury hotel, Hotel St. George, with Kämp Collection Hotels as the operator.
The investment volume was not disclosed. The transaction is expected to close when the conversion work has been finalised and Hotel St. George opens its doors to the public in summer 2017.
Juhani Erke, partner at Capman Real Estate said: 'We are very pleased to have found a long-term owner for this landmark building in the heart of Helsinki during the development phase. Our value add work in executing the conversion project in collaboration with Kämp Collection Hotels is in good progress and will be completed in summer 2017 when Hotel St. George, Helsinki's newest addition to the premium hotel segment, opens its doors.'
When the renovation is complete, Hotel St. George will include 153 rooms, a spa area, swimming pool, restaurant, cocktail bar and a winter garden. The hotel will mainly cater to business travellers as well as the increasing tourist flows to Helsinki.
Yrjönkatu 13 is the third exit of the Capman Nordic Real Estate fund. The focus of the €273 million fund established in 2013 is to acquire mainly office, retail and residential properties located in established submarkets of major Nordic cities.
