LaSalle Investment Management has advised the LaSalle E-REGI Fund on its acquisition of a landmark office building in central Helsinki, Finland’s most dynamic office market supported by one of the fastest-growing populations in Europe. The asset, which is close to fully let to a diversified tenant base, has been acquired for €45.5m.
The office building, known as Arkadia, was designed by the Finnish architect Toivo Paatela and built in 1932, with the most recent renovations completed in 2019. The multi-use property has a total lettable area of more than 10,000m² and is home to a range of tenants, including the Finnish Institute of International Affairs, the Research Institute of the Finnish Economy, and OP Financial Group.
Arkadia is situated on the fringe of Helsinki’s central business district, an established area that offers excellent public transport links and strong local amenities. The district is expected to improve further in the coming years, benefiting from strong structural factors including a high share of people with tertiary education and a sizeable amount of venture capital investments and wealth. Helsinki has also experienced a favourable supply/demand dynamic recently, with the supply of office space in the Finnish capital has increased just 3.6% between 2010 and 2019. This trend is expected to continue in the short- to medium-term, in part as the COVID-19 pandemic is likely to lead to the postponement or cancellation of some developments.
Uwe Rempis, Managing Director and Fund Manager of LaSalle E-REGI, said: “Finland has responded to the COVID-19 pandemic efficiently to date and we are optimistic about the country’s long-term economic prospects. We are pleased to have completed this acquisition of one of Helsinki’s most prestigious office buildings, which aligns with our strategy of investing in long-term income-producing assets with low-risk profiles while increasing the Fund’s exposure to the Nordics, target geography.”
