German fund manager Union Investment has acquired a residential development project in Helsinki from Nordic property developer Skanska in a forward funding deal worth around €74 mln.
The scheme is being acquired for Union's open-ended fund UniImmo: Deutschland, and marks the firm's second major residential property deal, following UniImmo: Europa's purchase of the Y-Towers project in Amsterdam.
The firm said that UniImmo: Deutschland was now also gradually building strategic exposure to the European residential real estate markets, with deals such as the Hyperion scheme in Finland.
The planned residential tower will comprise 216 residential units across 24 upper storeys and a total rental space of 10,537 m2. It is slated for completion in the second quarter of 2023, with construction having commenced in early March.
Hyperion is located in Vuosaari, an established housing sub-market in the Finnish capital.
Martin Schellein, head of investment management Europe at Union Investment Real Estate said: 'We want to develop residential investments into a strong pillar in our portfolio alongside offices, logistics, hotels and retail.
'The economically stable Nordics, countries where we have been investing in commercial property for many years, offer attractive framework conditions for residential investments, and especially development projects.
'The Hyperion project with its high sustainability standards and central location in an established Helsinki sub-market can serve as a role model for further residential investments. We are very pleased that we were able to secure this first large residential investment in the Nordics for our UniImmo: Deutschland fund.'
Tuomas Vaarasalo, development project director at Skanska added: 'We are pleased that our long-term development work has culminated in this high-quality residential building project that is now moving to the construction phase.
'We are looking forward to working together with Union Investment in this project. Hyperion will be an eye-catching landmark in Helsinki.'
The aim is to obtain a Finnish sustainability certificate for the Hyperion building with an energy efficiency rating of A. Solar panels on the roof and façade will help to meet the building’s energy needs. There are also plans to install a system for recovering heat from waste water to supply the residential units.
