Ylva, a real estate and F&B focused business which is owned by the Student Union of the University of Helsinki, has secured new development financing for the final phase of the Lyyra building complex that is under construction in Hakaniemi, Helsinki.
The financing will be used to complete a second and final building which will provide 57 residential apartments together with Finland’s first Citybox hotel.
The scheme will be complemented by a catering offer which will include a Fat Ramen noodle restaurant, along with Urban Gourmet, a food court that will offer a range of restaurant concepts.
The first building, which is dedicated to offices, has become a new headquarters for IBM and other leading hospitality outlets.
The new building is located between Siltasaarenkatu, Kolmas linja and Porthaninkatu and is scheduled to be completed in early 2024.
The financing in the debt transaction has been provided by the latest Velo Capital fund, Velo Mezzanine Credit Fund (VMC), which focuses on green financing, and recently announced a €136 mln first close.
Sustainability is a key focus of the project. Once completed, Lyyra will be operationally carbon-neutral while ambitious targets have been set for reducing the carbon footprint of the construction phase.
A LEED Platinum certification – the highest level of certification available in the internationally recognised system – will be sought for Lyyra. In addition, the facilities are aiming for energy class A, the Finnish Ministry of the Environment’s highest energy-efficiency classification.
Ville Vaarala, real estate director, Ylva said: 'Lyyra is the first and so far only new build in the rapidly developing Hakaniemi area.
'We are pleased that the rigorous focus on sustainability benefitted us also in the debt financing process and we were able to find financing partner sharing the common goal with us.'
Lesley Lanefelt, head of Nordics at Velo Capital, said: 'Lyyra is a new landmark green development in Helsinki, a city positioning itself as a leader in the green transition.
'The project’s sustainability credentials are a natural fit with our investment strategy and ambition to provide new sources of capital to tackle the social, economic, health and environmental challenges faced by cities and the built environment. We are very pleased to partner with the very experienced Ylva team to bring this project to fruition.'
JLL advised Ylva on raising the development financing.
Eemeli Lehto, head of debt & financial advisory, JLL Finland, said: 'We are proud to have helped Ylva throughout the financing process.
'Despite the challenging market conditions, as a testament to the high quality of the Lyyra asset, there was very strong interest from the debt providers in the competitive process.
'We are extremely delighted that Ylva was able to close very good financing solution tailored for the needs of the project.'
Velo Capital is the real estate credit arm of Urban Partners. The platform also encompasses the pan-European real estate investor Nrep, venture capital investor 2150, and private equity investor Luma Equity.
