07.04.2022

KanAm Grund Group acquires Fab9 in Helsinki for its LEADING CITIES INVEST

  • Prime location, long-term leases and carbon footprint of the building ensure further diversification of the LEADING CITIES INVEST portfolio
  • Awarded a “BREEAM In-Use Excellent” certification after comprehensive refurbishment of Fab9 in 2021 

KanAm Grund Group has purchased the Fab9 building in Helsinki for its open-ended real estate investment fund LEADING CITIES INVEST (ISIN: DE0006791825).
The office complex is located at Fabianinkatu 9, next to Kasarmitori square in Helsinki’s Kaartinkaupunki city center quarter and offers a floor space of 7,600 square meters. Seller of the property is Genesta Property Nordic. The parties agreed not to disclose the price of the transaction.


Location of the property as a key investment criterion
The Kaartinkaupunki quarter in Helsinki is regarded as the most sought-after office location in all of Finland. Several law firms, financial service providers and well-known companies are based there. The Esplanadi Park and Stockmann shopping center are situated in the immediate vicinity, along with restaurants, shops and a variety of visitor attractions. The district is also very well served by local public transport. 
The central railway station is approximately a kilometer away – less than 15 minutes walking distance – and the University of Helsinki underground station is only 750 meters away. Additionally, buses and trams are just a few minutes away from the office location, as is the Olympic Terminal – the dock for ferries to Stockholm.


Building scores with high technical standards and flexible floor plans 
The Fab9 complex was completed in 1963. Tenants have included a Finnish import and export company, the Helsinki City Museum and a global mineral processing company. Between 2017 and 2021 the building underwent extensive renovations and was rated “BREEAM In-Use Excellent” according to the Building Research Establishment Environmental Assessment Method (BREEAM).
The work undertaken included replacing the façade, the insulation and almost the entire roof. The building now has a mechanical ventilation and heat recovery system. Heat and cooling are provided by district heating, district cooling and split cooling appliances. Almost all the rentable space was upgraded between 2018 and 2021 and has a flexible layout. State-of-the-art lifts ensure accessibility for people with disabilities. 


Prime-location, long-term leases and carbon footprint of Fab9 ensure further diversification of the LEADING CITIES INVEST’s portfolio 
The building is almost fully let. One long-term tenant is a well-known law firm, which occupies around 70 percent of the building. There is also a restaurant in the lobby of the building. Further tenants include a state-owned enterprise and a Finnish telecommunications company. 
The Fab9 building is a perfect fit for the existing property portfolio. The building’s location in Finland, and the fact that the tenants are reputable companies with long-term rental agreements, adds strength to the investment fund as well as diversifying it further in terms of both geography and tenant structure. The building is also a positive addition to the fund from the point of view of sustainability. Fab9 has a class "B" energy certificate, so the building’s low carbon emissions reduce the carbon footprint of the portfolio overall. 


Helsinki is classified as a Western European Leading International City in Europe and has been rated as Good by the in-house C-Score Model
Helsinki is the capital of Finland, and the central government is based in the city. The metropolitan region is of major importance to the country’s economy. Although only 22 percent of the Finnish population lives there, Helsinki is responsible for around 40 percent of the country’s gross domestic product. Since 2017, the demand for property has been highest in the office segment.
In the past five years rents in the center of Helsinki have increased significantly. Under the C-Score Model developed by KanAm Grund Group, Helsinki is classified as a Western European Leading International City and rated as Good for office real estate. The city has a very stable legislative framework and a population of 1.7 million in the metropolitan region. Strong population growth is forecast for the coming years. In terms of sustainability, Helsinki scores highly, among other things, such as affordable public transport prices and low air pollution.


The real estate portfolio of the LEADING CITIES INVEST fund comprises 41 properties, including the new building, at 26 locations in ten countries. KanAm Grund Group was advised in the transaction by the commercial advisor Mrec Oy and the law firm Hannes Snellman.
 


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