Finnish pension and insurance provider Vakuutusosakeyhti枚 Henki-Fennia has acquired a retail property in the Espoo Suomenoja region of the country. The financial details were not disclosed.
Finnish pension and insurance provider Vakuutusosakeyhti枚 Henki-Fennia has acquired a retail property in the Espoo Suomenoja region of the country. The financial details were not disclosed.
Jones Lang LaSalle acted for Fennia.
The vendor was a Danish K/S (limited partnership) managed by Copenhagen-headquartered Nordic property investor EjendomsInvest. The original purchase of the asset by the Danes in 2001 was the first ever Danish K/S investment into Finland.
The asset comprises 9,753 m2 of leasable area and the tenants are Gigantti, IKH and Musti&Mirri, all with long-lease agreements. There is an ongoing renovation project and all the renewed retail premises will be in use by next spring.
Fennia real estate director Timo Rantala said the retail asset, with long leases and running and indexed cashflow, is a good investment in today's market given the volatility of the other asset classes. 'Since Fennia is a cash buyer and not dependent on external bank financing the property market provides good opportunities for us at the moment,' Rantala added.
Tapani Piri, managing director of JLL Finland, said good quality buildings with good tenants and long cashflows are trading well as they provide shelter in the current volatile investment market. 'It is the lack of good quality and safe products which keeps property investment markets low in Finland at the moment,' he added.
