Union completes Finnish office acquisition

Union Investment Real Estate has confirmed that what it describes as the high-growth metropolitan region of Helsinki remains the focus of its investment strategy in Scandinavia.

The Hamburg-based company made the statement as it announced the acquisition of Alberga B office building in the Espoo district of Helsinki. The investment volume for the transaction - originally signalled in July - came to about EUR 23.1 mln. The property is being added to the portfolio of open-ended real estate fund UniImmo: Europa.

The vendor is Finnish project developer NCC Property Development.

The building offers 5,590 m² of lettable space. It was completed in September 2012 and is 70% let.

The vendor has provided a three-year rental guarantee for the un-let space.

Union Investment said Alberga B enjoys a good location in Leppävaara, an established office district on ring road 1 with good links to the bus and regional rail network. Finland's second largest shopping centre, Sello, is within walking distance. Union Investment is aiming to obtain 'Very Good' certification for the property under the BREEAM sustainability standard.

Alberga B is the second phase of the Alberga Business Park development, which will ultimately comprise five phases. Union Investment acquired the neighbouring Alberga A building in 2010 for the UniInstitutional European Real Estate fund, likewise at the project stage. That property is now fully let.

In July 2012, Union Investment also secured the 100% pre-let Eventes Business Garden office property in the Espoo district of Helsinki. The office building will be transferred to the holdings of Unilmmo: Deutschland upon completion. Union Investment’s open-ended real estate funds currently hold property assets in Finland valued at some EUR 270 mln.

Click on the link below to read: Union Investment launches new open-ended fund for institutional investors