Ilmarinen sells landmark office building in Helsinki CBD to M&G Real Estate

Ilmarinen Mutual Pension Insurance Co. has sold a prime office property in Finland to an M&G European Property Fund managed by M&G Real Estate.

The purchase price is approximately €116 million ($133 million).

Alvar Aallon katu 3 is a 11,845-square-meter (127,499-square-foot) office building in the Töölönlahti submarket next to Helsinki Central Railway Station in the city’s central business district.

“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,” said Kenneth Nyman, portfolio manager commercial property investments, Ilmarinen. “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."

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 center with a high-quality specification and 43 parking spaces in an underground car park.

Thorsten Slytå, director of Nordic Region at M&G Real Estate, added, “The Finnish economy continues to perform strongly, with rising consumer confidence, falling unemployment, and GDP growth comfortably above the euro zone 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.”