City Pearls Portfolio

Between 2018 and 2019 CapMan Nordic Real Estate Fund II (“CMNRE II”) acquired three separate Helsinki CBD office assets off-market with an intention to create a prime office portfolio. Centrally located Helsinki CBD office assets rarely become available for purchase.

The acquired properties are situated within 500 meters of each other, either on or near the Esplanade, one Helsinki’s most prime locations. The under-managed assets, with a total leasable area of 6,500 sqm, were under-rented and 28% vacant prior to CMNRE II’s ownership. Since acquisition, the team has modernised large amounts of space in the buildings, re-geared existing leases and leased up many of the vacant units. As of September 2020, new or re-geared leases account for almost 50% of the leasable area in the portfolio and have resulted in a significant NOI uplift.

The portfolio comprises the following assets:

  1. Pieni Roobertinkatu 11 with 2,000 sqm of leasable area. Acquired in November 2018.
  2. Korkeavuorenkatu 30 with 2,200 sqm of leasable area. Acquired in December 2018.
  3. Pohjoisesplanadi 21 with 2,300 sqm of leasable area. Acquired in May 2019.

Once the ongoing and planned refurbishment projects and leasing work have been completed, CMNRE II will have a unique CBD office portfolio, which is expected to attract strong interest from both local and international core investors.

Fast facts

Country

Finland

Milestones

Investment 2018

Portfolio

Real Estate Value-Add

Fund

CapMan Nordic Real Estate II

Contacts

juhani.erke@capman.com