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Investors select Nordics as “anchor of stability”

During the coronavirus pandemic, the Nordic real estate markets have showcased their role as an anchor of stability in Europe and are accordingly in demand amongst investors, according to Warburg HIH Invest.

Warburg HIH to develop Next, located in Espoo

“As a result, we are continuing the expansion into the Scandinavian markets that we envisioned even before COVID-19,” said Matthias Brodesser, head of transaction management international at Warburg-HIH Invest.

The Hamburg based company, which has just announced the acquisition of an office development project called Next, located in Espoo, in Helsinki’s metropolitan area, said in a statement that it is looking forward to being active in Finland again.

Preletting to Fiskars Group underpins deal

The 9,200 sq m scheme was bought from NCC Property Development in a forward funding agreement on behalf of an individual fund. It has been pre-let in its entirety for 12 years to Fiskars Group as its new corporate headquarters. Completion is scheduled for late 2021.

Espoo is the second-largest city in Finland and part of the Helsinki metropolitan area. The project is situated Keilaniemi office submarket, also home to the Finnish corporate headquarters of Microsoft, Nestlé and a number of start-ups. In addition, several residential high-rises and a 660-room hotel and conference centre, are scheduled for construction in the area.

According to recent findings from Finnish research organisation KTI, 113,000 sq m of new office space was under construction at the end of June in the Helsinki metropolitan area which incorporates Helsinki, Espoo and Vantaa. KTI said the amount remained virtually stable, as there was 114,000 sq m under construction at the end of Q1/2020.