BlackRock Real Assets buys landmark building in Helsinki
BlackRock Real Assets has acquired a historic office building in Helsinki, Finland, for a fund run by its team. The acquisition represents BlackRock Real Asset’s second investment in the Helsinki office market.
The vacant office building is located in the central business district of Helsinki, abutting on three streets: Erottajankatu, Uudenmaankatu and Yrjönkatu. The building, with a gross leasable area of 9,632 square metres, was formerly owned by the Finnish state and served as the office premises for government agencies.
BlackRock’s ambition is to bring the listed Renaissance Revival building back to life and to create a unique Grade A property, which combines modern, functional office space with the property’s historic features. The existing architectural structure of the building provides a sense of magnificence with its intricate façade and 4-metre high ceilings, while the new multi-let layout and high-quality amenities will add function and create a feeling of exclusivity befitting a modern office building.
Thomas Mueller, Managing Director, BlackRock Real Assets, says: “The acquisition of the building is in line with our strategy to invest in well-located office properties with value creation potential in markets undergoing positive structural change and with strong occupier fundamentals. This acquisition is an opportunity to further increase the fund’s Nordic footprint, a region characterised by strong macro and demographic fundamentals as well as a high level of stability.”
Victor Persson, Vice President, BlackRock Real Assets, says: “We are pleased to be making our second investment in the Helsinki office market in a short time frame, a market driven by improved macroeconomics and strong tenant demand for good office space. We look forward to working with Trevian and the City of Helsinki to transform this historically valuable building into modern high-quality office space without compromising its heritage.”
BlackRock Real Assets was advised by Trevian Asset Management in this transaction, who will be BlackRock’s local advisor with regards to this investment in Finland.
BlackRock announced its first property acquisition in Finland – an office building in Ruoholahti, Helsinki – in September.