CBRE acted as the Seller's exclusive commercial advisor: Alvar Aallon katu 3
December 20, 2018
Ilmarinen sells landmark office building in Helsinki CBD to M&G Real Estate
Helsinki, 20 December 2018
Ilmarinen Mutual Pension Insurance Company has sold a prime office property Alvar Aallon katu 3 to M&G Real Estate. Alvar Aallon katu 3 is a 11,845 sq m office building in the Töölönlahti submarket next to Helsinki Central Railway Station in the city’s central business district. Fully let to four tenants, the anchor tenants are two Helsinki stock listed companies: a media house Alma Media and a fiber material and solutions company Ahlstrom-Munksjö. Erected in 2012, the building is one of the very few modern office properties in the Helsinki city centre with a high-quality specification and 43 parking spaces in an underground car park.
The buyer is M&G European Property Fund managed by M&G Real Estate. The purchase price is approximately 116 million euros.
Kenneth Nyman, Portfolio Manager Commercial Property Investments, Ilmarinen, points out that “It has been a very exiting journey for the entire collegium to develop the so called Alma Media House from brownfield into a top modern sought-after fully occupied office complex. The location has further improved throughout the years when among others the Helsinki Music Centre and Helsinki Central Library, Oodi, have opened for the public next doors. The Töölönlahti city district area is today a superb mix of modern HQ offices and high quality cultural supply. Hence, it was time to find a new home for the well running office property and we are particularly pleased that M&G turned out to be selected one in the auction process.”
Thorsten Slytå, Director of Nordic Region at M&G Real Estate, comments: “The Finnish economy continues to perform strongly, with rising consumer confidence, falling unemployment, and GDP growth comfortably above the Eurozone average. That is why Helsinki is one of the most active destinations in Europe for foreign investment, and why we are so pleased to have secured this excellent opportunity on behalf of our investors.”
Simon Ellis, Fund Manager at M&G Real Estate, adds: “The Helsinki office market has become increasingly attractive to investors, with the Finnish GDP improving, good quality technological infrastructure and a lack of supply underpinning improving rents. Our acquisition of Alvar Aallon katu 3 is timely, taking advantage of a capital value that is favourable to similar buildings in the same submarket. With our asset management expertise, we are intent on maximising the profitability of the building for the long term.”
Sami Kiehelä, Head of Capital Markets CBRE Finland, comments, "We are extremely happy about the sale of this prime office building in Helsinki CBD. Driven by strong occupier demand and very limited supply, Helsinki CBD office market enjoys robust rental growth and prime yield has further declined. This high-quality property attracted strong interest from a wide range of capital sources demonstrating strong demand for prime Helsinki assets.”
CBRE acted as the seller’s commercial advisor while Hannes Snellman Attorneys Ltd acted as the seller’s legal advisor.
Portfolio Manager Commercial Real Estate
Ilmarinen Mutual Pension Insurance Company
M. +358 (0)40 843 3272 [email protected]
Director of Nordic Region
M&G Real Estate
M. +46 76 164 59 65 [email protected]
Senior Director | Head of Capital Markets
M. +358 (0)40 868 0383 [email protected]
About Ilmarinen Mutual Pension Insurance Company
Ilmarinen is Finland’s largest mutual pension insurance company. Our task is to ensure that our customers receive the pension they earned from employment. We promote a better working life and thus help our customers succeed. In total, we are responsible for the pension cover of more than 1,1 million people. We have investment assets of EUR 47 billion to cover pension liabilities. For more information, please visit: www.ilmarinen.fi
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com. CBRE Finland Oy is part of CBRE Group with more than 90 professionals working in offices in Helsinki, Turku, Jyväskylä and Oulu. We offer a broad range of commercial real estate services for real estate investors and occupier clients such as sales advising, leasing, valuations, transactions, consulting, workplace and building consultancy as well as asset and shopping centre management. To learn more visit our website www.cbre.fi
About M&G Prudential and M&G Investments
M&G Investments is part of M&G Prudential, a savings and investment business which was formed in August 2017 by our parent company, Prudential plc and has £351 billion of assets under management. M&G Prudential has over 7 million customers in the UK, Europe and Asia, including individual savers and investors, life insurance policy holders and pension scheme members. M&G Prudential is set to demerge from Prudential Plc to become an independent company listed on the London Stock Exchange. For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate. M&G recognises the importance of responsible investing and is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Programme. Its £30 billion property arm, M&G Real Estate, is a leading financial solutions provider for global real estate investors, has a sector leading approach to responsible property management and is committed to continuously improving the sustainability performance of its funds. For more information, please visit: http://www.prudential.co.uk/businesses/mandg-prudential
This press release reflects the authors’ present opinions reflecting current market conditions; are subject to change without notice; and involve a number of assumptions which may not prove valid. It has been written for informational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product. Past performance is not a guide to future performance.
The services and products provided by M&G Investment Management Limited are available only to investors who come within the category of the Professional Client as defined in the Financial Conduct Authority’s Handbook. They are not available to individual investors, who should not rely on this communication. Information given in this document has been obtained from, or based upon, sources believed by us to be reliable and accurate although M&G does not accept liability for the accuracy of the contents.
M&G Real Estate is a business name of M&G Investment Management Limited and is used by other companies within the Prudential Group. M&G Investment Management Limited, M&G Alternatives Investment Management Limited and M&G Real Estate Limited are registered in England and Wales under numbers 936683, 2059989 and 3852763 respectively with their registered office at Laurence Pountney Hill, London EC4R OHH. M&G Investment Management Limited and M&G Alternatives Investment Management Limited are authorised and regulated by the Financial Conduct Authority.