24.09.2012

Transactions volume in Finnish property market up by EUR 200 million

Foreign investors account for about 30% of the EUR 1.4 billion total transactions volume, according to KTI Finnish Property Monthly.

Foreign investors accounted for about 30% of the EUR 1.4 billion total transactions volume in the Finnish property market during the period January - August 2012, according to preliminary statistics published by KTI Finnish Property Monthly. The transactions volume was over EUR 200 million more than in the corresponding period last year.

KTI Finland is an independent research organisation and service company providing information and research services for the Finnish real estate industry. The latest KTI Finnish Property Monthly has also reported the following news from the sector.

New real estate funds

Property investment company VVT Kiinteistösijoitus Oy has established a new property fund called VVT Property Fund I which has a target GAV of about EUR 250 million and is focusing on new and existing commercial properties in Finland’s major cities. Investors of the new fund include pension insurance companies Varma and State Pension Fund, and the Finnish retailer Tradeka.

Sponda Plc has established a new real estate fund called Sponda Fund III, which invests primarily in logistics and industrial properties in Finland's growth centres. Other investors in the fund are pension insurance companies Varma and Etera. The target size of the fund is about EUR 170 million and it has already acquired an initial investment portfolio worth about EUR 90 million.

Property purchases

Cordea Savills´ fund has purchased a 10,519 square metre office and retail property from Nordea Life Assurance Finland Ltd located at Aleksanterinkatu 11 in Helsinki’s central business district for about EUR 60 million. Niam has purchased 15 office and two retail properties with a total lettable space of more than 100,000 sqm of in the Helsinki Metropolitan Area for an undisclosed sum. The portfolio is known as Bronda portfolio, which CapMan sold to a joint venture of Icelandic investors Samson Properties, Royal Bank of Scotland and Ajanta in December 2006.

Property development company Peab has sold Eventes Business Garden in the Matinkylä area in Espoo to Union Investment Real Estate GmbH for over EUR 62 million. Citycon has acquired the Citytalo retail property located in Oulu city centre for EUR 13.5 million and the net initial yield around 6.5%. Residential property investor SATO has acquired a residential building currently under construction in the Jätkäsaari area in Helsinki, from Nordea Life Assurance Finland Ltd. for about EUR 12.8 million.

Ovenia acquires Realprojekti

Finnish real estate service provider Ovenia has acquired Realprojekti Oy, a company specialising in shopping centre management and real estate development. Technopolis Plc has made an agreement with Are Group for the management and technical maintenance of Technopolis´s office properties in Jyväskylä, Oulu, Tampere and the Helsinki metropolitan area.

Current development projects

NCC is about to start the construction of Lielahti centre in Tampere which includes 8,000 square metres of retail premises, a library, health centre, and services for the elderly. YIT is starting the work on the construction of a new office and retail centre adjacent to the Tikkurila railway station. The EUR 150 million project also includes the construction of three residential buildings in the railway station area.

Finland’s largest real estate conference

The Annual Convention of Property Investment Prospects 2012 will be held in Hämeenlinna on 8-9 November, bringing together executive-level business professionals in the Finnish real estate market. Read more at www.propertyinvest.fi

Read the full KTI Finnish Property Monthly here