German asset manager KanAm Grund Group has purchased two office assets in Helsinki for its Leading Cities Fund for SEK 680 mln (€65 mln).
The properties were acquired from local player NCC, which developed the assets. They comprise the B and C buildings of NCC's Fredriksberg office scheme in the Konepaja district of the city.
'In Fredriksberg, we have developed a unique office project with a modern, sustainable design, sense of community and an attractive service offering. We are very pleased to initiate cooperation with KanAm Group. It’s great that they have chosen this project as their first investment in Finland, with its location in one of Helsinki’s most attractive neighbourhoods,' said Petri Bergström, head of NCC Property Development in Finland.
NCC is developing the area in four phases. Fredriksberg A was completed and sold to Swiss Life Asset Managers in autumn 2018. The second and third phases, Fredriksberg B and C, have been started, with completion planned for the second quarter of 2020. They cover a total of approximately 11,000 m2 of lettable area for offices and retail.
The implementation of the final phase D is expected to begin immediately after completion of B and C. All projects are seeking a Breeam Excellent rating.
'Fredriksberg is not only designed as a group of office buildings, but as a vibrant meeting place for Helsinki residents and visitors offering life also beyond office hours. It reflects well our design principle to create thriving places in thriving cities,' said Yirui Jiang, head of property development and project management at NCC.
At the time of sale, the leasing rate was 40%, and NCC said it was providing a two-year rental guarantee for unleased space in connection with the deal. The transaction will be conducted as a company divestment, with a forward funding component.
