Cordea Savills has sold Niittytori shopping center, in Niittykumpu Espoo to SRV.
Niittytori is located next to the future metro line's station at Niittykumpu. The property was constructed in 1992 and it is fully let with a leasable area of approx. 4,000 m². The main tenants, Kesko and Alko, occupy the ground floor, both with long leases.
"Cordea Savills has owned the property for four years and has renegotiated more than 90% of the lease agreements. The new metro line will change the zoning of the area around the metro station into residential use. We think it is a good time to for us to transfer the ownership of the property to a party with an interest in developing the whole area," says Håkan Blixt, Director of Investments at Cordea Savills.
"Cordea Savills is very pleased with the improvements made in all our properties in Helsinki area and we will focus on finding new investment opportunities in Finland for our funds".
SRV, together with Mutual Pension Insurance Company Varma and SATO Oyj have a reservation regarding the planning of the future Niittykumpu metro station and the use of the neighboring area. The intention is to plan and build residential and commercial buildings in the area. The preliminary plan includes building rights of about 150,000 m² of floor area.
"SRV is intensively involved in development of the area around the future metro station. Through the acquisition of Niittytori we are able to develop the area in the intersection of Merituulentie and Haukilahdenkatu as a whole," says Timo Nieminen, Senior Executive Vice President of SRV. The transaction has no effect on the current lease agreements, he says.
Leimdörfer acted as commercial and White & Case as legal advisor to Cordea Savills in the transaction. Krogerus Attorneys acted as SRV's legal advisor.