Hyperco, a Finland-based real estate investment firm that is set to grow a portfolio across the Nordic region focused on acquiring and developing data centres, has secured an asset in the Helsinki Metropolitan Area.
The property has two committed and long-term tenants - international data centre group, Equinix, and high-tech security company, Thales.
Hyperco has acquired the property from TS-Yhtymä, a Finnish family office, at a total transaction value of over €35 mln. The property is located at Myllynkivenkuja 4 in Vantaa.
Established less than two years ago, Hyperco is on the path to becoming a well-known real estate investment firm.
Its investors include NREP, one of the largest real estate funds in the Nordics, and Varma, one of Finland’s largest pension funds.
A real estate credit fund managed by Morgan Stanley Investment Management, the global asset management division of Morgan Stanley, has provided senior financing for the Helsinki transaction.
The industrial building is situated next to a power plant, and totals 16,900 m2 of leasable area, and has potential for a 6,500 m2 extension.
‘We see plenty of potential for development at the property as it features valid industrial zoning, plenty of unused building rights, excellent fibre and electricity connections,' said CEO of Hyperco, Timo Pohjanpalo, who is a former investment manager at NREP. 'A 10-20MW data centre could be developed at the site, and we are currently planning the extension.'
Other co-founders are Aleksi Taipale, Ville Vartiainen, and Ari Kurvi.
The company confirmed the acquisition of the asset in Helsink was Hyperco’s first.
Its investment pipeline currently includes standing and development assets across the Nordics.
Over the next couple of years, Hyperco will invest in both existing data centres as well as large build-to-suit developments targeted for fast-growing international technology companies. It plans to expand its portfolio to other Nordic countries.
It does so at a time when the Nordic data centre market has grown rapidly with several new announcements of large m&a deals and hyperscale developments, such as Microsoft’s cloud region in Finland, and the trend is expected to continue.
The growth is explained by access to cheap, reliable, and renewable power as well as abundance of land, which are typically scarce resources in other geographies, such as the Central European markets.
‘We see plenty of exciting investment and development opportunities in Finland and the Nordics, particularly now, as power and land availability issues are constraining supply in other markets,' said Pohjanpalo.
