Finnish pension fund buys EUR 90m retail project

Finnish pension insurance company Keva has bought the Hmeenlinna shopping centre project 100 km north of Helsinki for SEK 800 mln (EUR 90 mln) in a forward funding transaction. The vendor was the development arm of Swedish construction group NCC.

The asset is currently 47% pre-let and is expected to be fully leased by the fourth quarter of 2014, therefore adding a maximum amount of SEK 130 mln to the transaction price. NCC is responsible for leasing the remaining vacant space up to three years after completion of the project.

Hämeenlinna, which aims for a BREEAM Very Good rating, comprises 26,200 m² of leasable retail space and 600 parking spaces. Construction of the shopping mall is under way.

'Through this divestment, NCC consolidates its leading position as a property developer in Finland, which is one of our most important markets and where we currently have six projects in progress,' said Joachim Hallengren, president of NCC Property Development.