Hamburg-based fund manager Union Investment Real Estate said that its UniImmo Deutschland property fund has invested EUR 45 mln in a business park development in Helsinki. The Duetto Business Park development was acquired from Finland's largest construction company, YIT Construction, and represents Union Investment’s first acquisition in Finland. The 14,000 m[sup]2[/sup] in office space is set to be completed in September 2008 and also represents UniImmo Deutschland’s first acquisition of a project development.
Hamburg-based fund manager Union Investment Real Estate said that its UniImmo Deutschland property fund has invested EUR 45 mln in a business park development in Helsinki. The Duetto Business Park development was acquired from Finland's largest construction company, YIT Construction, and represents Union Investment’s first acquisition in Finland. The 14,000 m2 in office space is set to be completed in September 2008 and also represents UniImmo Deutschland’s first acquisition of a project development.
Noting that high investment demand has led to historically low returns for let properties in Europe, Union Investment said that it is now actively seeking out project acquisition possibilities in Germany and elsewhere in Europe.
'Buying projects from reputable partners such as YIT offers the chance to acquire new buildings at an early stage and achieve higher returns than on completed properties by accepting well-understood risks,' Union Investment management board member Frank Billand said in a statement. 'In view of rising rents and falling vacancy levels, we feel that Helsinki currently offers ideal conditions for investing in office projects.'
About 30% of the Duetto Business Park office space has been let to retailer Hobby Hall while there is a one-year rental guarantee provided by the vendor. The development is expected to benefit from its proximity to the airport and strong links to the city centre. The German fund manager noted that, alongside Dublin, the Helsinki metropolitan area is one of the fastest growing commercial centres in the EU 15.
Earlier last week, YIT sold its Entresse shopping mall in the city of Espoo, Finland, to Finnish private equity investor CapMan and Royal Bank of Scotland's RBS Nordisk Renting unit. The complex, scheduled to open in winter 2008, will have a leasable area of some 9,500 m2.