TH Real Estate has agreed to acquire a 50% stake in the Kamppi Centre, a prime shopping centre located in Helsinki, Finland from Barings Real Estate Advisers (“BREA”), acting on behalf of the Nordic Retail Fund, thereby creating a 50:50 joint venture partnership between Allianz and TH Real Estate. The 50% stake, which values the centre at over €500m, is to be acquired on behalf of TH Real Estate’s flagship pan-European investment vehicle, the European Cities Fund, which was launched in 2016.
Located in Helsinki city centre, the asset is adjacent to the prime retail pitch. Built over the Kamppi metro and bus station, the centre is well connected to public transport. The Kamppi Centre also benefits from direct access to an underground car park with 1,500 spaces.
Totalling 36,600 m² (393,959 ft²) of retail and leisure space, the Kamppi Centre features several prime retail brands, including Levi’s, Calvin Klein, Mango, Stadium, and Clas Ohlson. BREA has recently completed a repositioning of the centre’s fifth and sixth floors, which has increased the revenue from these floors by around 50%, and the scheme now includes several upmarket independent restaurants and bars. Kamppi has the highest footfall of any shopping centre in the Nordics, with approximately 42 million visits in 2016.
The European Cities Fund targets income-producing properties in “future-proof” cities across Europe. Backed by extensive research, the Fund targets investments that are well- positioned to benefit from long-term growth. The Kamppi Centre fits strategically within the target initial portfolio being assembled.
Andrew Rich, European Cities Fund Lead Fund Manager, TH Real Estate, said: “Its prime and diverse tenant mix, strong central location and excellent connectivity, make the Kamppi Centre an ideal fit for the strategy of the European Cities Fund. The asset has a strong performance track record and additional asset management opportunities. We look forward to working alongside Allianz to grow and strengthen the centre.
“Our research has identified Helsinki as a city which is well-positioned to benefit from demographic trends as it enjoys strong population growth and high discretionary spending.”
Nick Pink, Head of Fund Management at Barings Real Estate Advisers added: “We recently completed a major refurbishment of the top two floors of Kamppi, and, having enhanced Net Operating Income from the centre by over 20% since we acquired the asset, we felt the time was right to sell our remaining stake in the centre. We have a strong team in place in the Nordics and we will continue to seek investments in the region, particularly those where we are able to apply our asset management skill to create value for our clients.”
CBRE advised Barings Real Estate Advisors.
