Union Investment enters Finnish logistics market

Germany's Union Investment Real Estate has purchased a modern logistics building in Helsinki next to Vantaa International Airport. The deal marks Union Investment's entry in the Finnish logistics property market. The property, which was bought from an international holding company owned by Novator Properties, Ajanta Oy and Royal Bank of Scotland, is earmarked for Union Investment's institutional open-ended real estate fund Immo-Invest: Europa. The total value of the investment is EUR 10mln. Jones Lang LaSalle Finland acted for the seller.

The Tikkurilantie136 building is leased to a single tenant with a long lease agreement and it is one of the few modern logistics properties in the area with good access to airport and major roads, the company said.

'The long lease, good building and moderately low rental level were the key points in our investment consideration. These were combined with almost zero vacancy rate in the area and the fact that this asset is very close to the Airport and the micro location adds extra security for the investment,' said Michael Montebaur, member of the Management Board of Union Investment.

'We have been looking for the Finnish logistics market for a while and the investment possibilities which fulfil the modern logistics criteria are not easy to find,' added Union Investment's head of acquisitions Victor Stoltenburg. 'The solid economy of the country is a given for us as an investor but we also think that the liquidity of the Finnish property market has improved rapidly and the business environment is easy and safe for foreign investors.'