TH Real Estate has acquired a 50% stake in the Kamppi shopping centre in Helsinki from Barings Real Estate Advisers at a price which values the mall at over €500 mln. The yield is believed to be sub-4.5%, according to reliable sources.
The asset was purchased on behalf of TH Real Estate's flagship European Cities Fund. Germany's Allianz Real Estate owns the other 50% of the property.
'Its prime and diverse tenant mix, strong central location and excellent connectivity make the Kamppi Centre an ideal fit for the strategy of the European Cities Fund. The asset has a strong performance track record and additional asset management opportunities,' commented Andrew Rich, European Cities Fund lead fund manager. 'We look forward to working alongside Allianz to grow and strengthen the centre.'
Located in Helsinki city centre, the asset is adjacent to the prime retail pitch. It totals 36,600 m2 of retail and leisure space and was built over the Kamppi metro and bus station.
Tenants include Levi’s, Calvin Klein, Mango, Stadium, and Clas Ohlson. Kamppi has the highest footfall of any shopping centre in the Nordics, with approximately 42 million visits in 2016.
'Our research has identified Helsinki as a city which is well-positioned to benefit from demographic trends as it enjoys strong population growth and high discretionary spending,' added Rich. TH Real Estate's European Cities Fund targets income-producing properties in 'future-proof' cities across Europe.
'We recently completed a major refurbishment of the top two floors of Kamppi, and, having enhanced Net Operating Income from the centre by over 20% since we acquired the asset, we felt the time was right to sell our remaining stake in the centre,' commented Nick Pink, head of fund management at Barings Real Estate Advisers.
'We have a strong team in place in the Nordics and we will continue to seek investments in the region, particularly those where we are able to apply our asset management skill to create value for our clients,' Pink concluded.
CBRE advised Barings Real Estate Advisers. Cushman & Wakefield acted for TH Real Estate.
