Union Investment grows Finland portfolio with office project buy

Union Investment grows Finland portfolio with office project buy
Photo: Televisiokatu / Courtesy of Union Investment

Union Investment has expanded its portfolio in Finland by purchasing an office property in Helsinki’s Ilmala district.

The Aura office project was purchased for the open-ended real estate special fund UniInstitutional EuropeanM.

The seller is the Finnish project developer and general contractor Hartela Etelä-Suomi Oy, which will construct the building by June 2024.

The parties have agreed not to disclose the purchase price.

“Helsinki is a metropolitan region with a high wealth factor and an economically strong macro location. The vacancy rate at the Ilmala location is less than one per cent. Together with the attractive design and architecture of the building, this means that the conditions are ideal for good, long-term letting,” says Kubilay Ozbisikletci, Senior Investment Manager Nordics at Union Investment.

Of the approximately 11,500 sq m of lettable space, about 9,000 sq m is office space distributed from the ground floor to the 5th floor. The rest is retail and restaurant space as well as a fitness studio. However, these spaces can be converted into office space without changing the building plan. In the basement there are 97 physical parking spaces or 121 parking rights and 80 bicycle parking spaces. LEED Gold certification is planned.

The 3rd to 5th floors have already been leased for 15 years to a state-owned company.

With the Aura project, Union Investment’s Finland portfolio grows to a total of 11 properties and a volume under management of around EUR 730 million. It consists of eight office buildings, one retail building and two residential properties located in Helsinki and the neighbouring cities of Espoo and Vantaa respectively.