CapMan Nordic Real Estate fund has acquired Yrjönkatu 13, a landmark building by the Old Church Park in Helsinki city centre. The property will be converted into a luxury hotel named St. George, operated by Kämp Group and due to open in summer 2017.
Yrjönkatu 13 was originally designed for residential use by architect Onni Tarjanne, responsible for designing many landmark buildings in Helsinki, including the Finnish National Theatre. The most iconic section of the current 10,200m² building was completed in 1890, after which it was expanded in several phases. The property has since been use as office space since the 1970s.
The existing floor plans are well-suited for hotel conversion and the CapMan Nordic Real Estate fund has already signed a long-term lease agreement with Kämp Group, a portfolio company of the CapMan Buyout X fund, managed by CapMan.
The hotel concept will include 150 hotel rooms, an exclusive spa area with a swimming pool, a restaurant, a cocktail bar and a winter garden located in the inner courtyard. The image and interior design of the hotel will be handled by the Swedish agency Stylt Trampoli.
Juhani Erke, partner at CapMan Real Estate, said: "We are excited to develop this state-of-the-art hotel in such a great location. We have worked together with Kämp Group for over a year to develop the hotel conversion plan. CapMan Real Estate's strong experience in property development and hotel properties have been a great advantage already in the project planning phase. We are proud to bring new life to this exceptional building together with Kämp Group."
Laura Tarkka, managing director of Kämp Group, said: "Hotel St. George aims to become Helsinki's most enchanting luxury hotel. Classical yet modern with surprising style, it complements the range of top hotels in Helsinki, the most famous of which is the group's flagship hotel, Hotel Kämp. The hotel offers not only first-class service and impressive design, but it's also perfectly located in the very heart of Helsinki."
The renovation is due to start in January 2016. Project management consultant is Ramboll CM Oy while Arkval Architech Oy is responsible for the architectural planning. The renovation works aim to achieve LEED Platinum certification.
Yrjönkatu 13 is CapMan Nordic Real Estate fund's 14th investment overall and its third in Finland.
Mika Matikainen, senior partner and head of CapMan Real Estate said: "This investment is perfectly in line with our CapMan Nordic Real Estate fund's value-add strategy and we are very happy that the whole property has already been leased before the renovation works begin."
