Union Investment acquires fully let office project in Finland for UniImmo: Deutschland

Union Investment has made an acquisition in the fast-growing Helsinki metropolitan area for its open-ended real estate fund UniImmo: Deutschland. The Eventes Business Garden, an office development already 100% pre-let on a long lease, was purchased by the Hamburg-based real estate investment management company for €62.3 million. The new headquarters of Outotec Oyj, a listed technology, engineering and plant construction company with a strong credit rating, is scheduled for completion by mid-2014. Union Investment is forward funding the project by Finnish developer Peab Oy, which offers some 14,133 sq m of rental space. The vendor is aiming to obtain US LEED “Gold” green building certification for the complex.

The 8-storey development is situated in the established office submarket of Espoo-West, around 12 kilometres west of Helsinki’s business district and easily accessible by motorway. The location is within walking distance of Iso Omena, Finland’s fourth largest shopping centre with around 49,000 sq m of retail space. The Matinkylä metro station is currently under construction next to the centre, with completion scheduled for 2015, which will further enhance the value of the office location.

Union Investment’s open-ended real estate funds currently hold real estate assets valued at around €240 million in Finland. Further acquisitions in the Helsinki metropolitan region are currently being explored to complement the ongoing development at Eventes Business Garden.