A fund managed by Deutsche Asset Management has acquired the former headquarters of mobile phone maker Nokia in Espoo, Finland for €164 mln, or a 4.65% net initial yield. The transaction is one of Finland's biggest individual office property deals in 2017.
The asset consists of two office buildings and a parking garage built in 1996 and 1997. It was sold to Deutsche Asset management in a share deal by landlord Exilion Real Estate I, managed by Exilion Management.
The complex provides 31,000 m2 of lettable area while the parking lot has 1,250 spaces. It was originally built as Nokia’s headquarters and currently houses three major tenants: Microsoft Mobile, Fortum and Tieto.
Exilion is owned by three Finnish institutions, Elo Mutual Insurance Company, Keva and Etera Mutual Pension Insurance Company. The investment company took a big bet on the future fortunes of Nokia in 2012 with the purchase of the entire complex in a sale-and-leaseback deal worth €170 mln.
Located in the Keilaniemi area of Espoo in the Greater Helsinki area, the 48,000 m2 property comprises of three office buildings, one of which was already sold to AXA Investment Managers - Real Assets in 2014 for €64.8 mln, or a net initial yield of 5.8%.
'Executing the transaction is a natural part of reshaping our current real estate portfolio,' said Ari Talja, the managing director of Exilion companies. 'The total investment in the entity of the properties has been excellent, and furthermore, we are genuinely pleased to find such a reliable and established new owner for the property, who will continue to develop the property in cooperation with the property users.'
Catella Property and Aleksandra Attorneys acted as advisors to Exilion in relation to the transaction.
