Polar Real Estate, the Finnish IVG Immobilien AG subsidiary, has acquired a property portfolio consisting of ten office buildings in Helsinki for EUR 63 million. The portfolio rental area is 63,000 m², with a economic rental level of 93%. 75% of the total portfolio are in the centre of Helsinki.
The seller is the Ilmarinen Mutual Pension Insurance Company, the second largest pension insurer and one of the largest property owners. Tenants include Telia-Sonera, the leading telecommunications group in Northern Europe, the Finnish Sports Federation and the insurance group Nordea Life
Commenting on the recent property acquisition by the European property company, IVG CEO Eckart John von Freyend stated: 'We have acquired an extremely attractive portfolio in Helsinki with good rental levels which opens up interesting potential for enhanced value.' With the purchase of the Ilmarinen portfolio, IVG is continuing their strategy of concentrating their activities on the Helsinki conurbation, explained John von Freyend.
With this portfolio acquisition, the IVG property portfolio in Finland again reached a volume of EUR 300 million after several disposals, had been realized at the end of 2003 and at the beginning of the year, of shopping centres outside Helsinki. IVG considers the timing favourable: for the next few years, annual economic growth of approximately 3% is forecast for Finland. The property market is experiencing strongly rising demand.