NREP, an urban investor with €18 bn of assets under management, has acquired the Eteläesplanadi 2 office building in Helsinki, Finland, from Allianz.
Although financial details were not disclosed, the price is said to be around €115 mln.
The acquisition forms part of NREP’s strategy to grow its sustainable offices portfolio, focusing on high quality properties in strong locations. NREP’s strategy focuses on the Nordic markets, where the office sector has remained more resilient than many other European capitals. NREP invests in both standing office assets and new developments, operating them under their flexible workspace brands Woods.
Eteläesplanadi 2 is a landmark building located next to the waterfront in Helsinki CBD. The historic asset comprises 14,500 m2 of leasable space and has 18 tenants including Borenius, Carnegie, Access Partners and Finlandia Group. The property also features a restaurant, generous lobby, and underground parking.
Completed in 1912, the building was designed by architect Karl Håkan Einar Lindahl. In 1952, an extension designed by Ole Gripenberg was implemented to the building, which increased the amount of office space. The property served as the head office of the Finnish paper and pulp company UPM up until 2013.
NREP will enhance the property's service concept and undertake an investment programme, with an emphasis on improving its environmental classification and increasing energy efficiency.
Joonas Lemstöm, Finland country lead at NREP, said: ‘Eteläesplanadi 2 is a historically notable building, it aligns perfectly with our strategy which is to offer high quality offices in the strongest central locations, and where we can provide today’s modern occupiers with much needed sustainable, flexible and quality workspace, alongside a full-service offering.’
Toke Clausen, director of Office investments at NREP, said: ‘Our Office segment is growing, and we now manage close to 100 properties. We see clear demand for modern, well-located and sustainable workplaces, and we want to become a leading provider of high-quality and flexible office spaces. With this acquisition, we now have four significant office properties in the Helsinki Metropolitan region,’