Protego Real Estate Investors has acquired the Kamppi Shopping Centre in Helsinki on behalf of the Nordic Retail Fund from Boultbee for €52.5 mln. Reported as the largest single asset transaction in Europe this year the deal reflects a net initial yield of 4.5%, increasing to circa 6.0% in 2012.
Kamppi Shopping Centre comprises over 140 shops, 26 restaurants, a bowling alley and a nightclub. The centre’s total area is 40,000 m² and annual visitors number 30 million. Located in Helsinki’s city-centre it has attracted a broad selection of international and Nordic retailers such as, Benetton, Marimekko, Nike, Mango and Guess. According to Steve Boultbee Brooks, co-owner of Boultbee, the centre has generated annual turnover of €90 mln. Cushman & Wakefield advised Protego while Boultbee was advised by Michael Elliott.
David Turner, European investment director at Protego, commented: 'The property provides a host of asset management opportunities which, with our joint venture partner EFM, will be implemented over the next few years. The purchase underscores the Fund’s long term commitment to the region, where it has quickly established itself as one of the leading shopping centre investors. Our aim is to acquire additional assets of a similar quality in the Nordic region over the next 12 months.'
Hugo Llewelyn, head of investment at Protego, added: 'The strategy of our Nordic Retail Fund is to acquire dominant shopping centre assets of the highest quality, where there are real opportunities for strong rental growth and active asset management. Kamppi has all these attributes. Combined with this, we were able to purchase the asset 'off market' at an attractive yield, at a time when prime retail in Finland is at the top of many institutional investors' European buying list. The fund now owns more than €1.1bn of prime shopping centres in Finland and Sweden, with a target GAV of up to €.5bn.'
