Office lease up case in a highly attractive and improving business park in Espoo (Helsinki)
Our office portfolio in Espoo consists of four office buildings in the highly attractive Keilaniemi area of greater Helskinki. The portfolio comprises 24,540 sqm spread across three interconnected buildings (Keilaranta 4, 6 & 8) and a fourth building located in close proximity (Miestentie 1). The Keilaniemi area is home to several headquarters of leading Finnish companies and the area has been transforming into a mixed use community with significant amounts of residential housing added in recent years. The area’s attractiveness has also increased due to infrastructure improvements such as the new metro station (opened in late 2017) and rebuilding a portion of the nearby roadways so that they go through underground tunnels. At acquisition, the portfolio was approximately 35% vacant with most of the vacancy concentrated in one building. After the acquisition, one of the buildings became fully vacant (this was expected) and total vacancy in the portfolio was approximately 50%.
We have been working actively to lease up vacancies, replace under-rented areas with tenants paying market level rents and modernizing both the exterior facades and interior spaces. During the first half of 2021, we signed a lease for approximately 1,300 sqm with an anchor tenant for the Miestentie 1 building. Since 2017, we have signed leases for approximately 17,820 sqm. We believe the portfolio will be ready for sale in late 2021 or during 2022.