Heimstaden Bostad has paid SEK 215 million (€21 million) for 242 homes in Helsinki, its first acquisition in the Finnish market.
The properties consist of two standing rental buildings providing 242 homes and 639 sq m of commercial space. The total lettable area is 7,973 sq m and the asset provides an estimated gross rental income of approximately SEK 18 million (€1.8 million).
The properties are located close to a metro station in the Herttoniemi district, 10 minutes from the city centre by metro and accessible for the city’s universities. The area is also well served with public services and is close to the sea.
“The Finnish residential market offers attractive fundamentals, in particular in the Helsinki Metropolitan area, where strong household formation and economic growth support long-term demand for residential units,” said Christian Fladeland, co-chief investment officer at Heimstaden. “The attractive location of these units combined with affordable price points set the basis for attractive risk-adjusted returns,”
CEO Patrik Hall said the move is a natural next step in the company’s expansion as “the last of the Nordic markets to have a Heimstaden presence”.
“Once we reach sufficient scale, we will establish in-house operations in Helsinki and we look forward to providing long-term sustainable and friendly homes to the Finnish market,” he said.
Heimstaden Bostad was advised by DLA Piper, GEM Property, H&H Consulting, and PwC.