X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(For more retail coverage, click GlobeSt.com/RETAIL.)

HELSINKI-Doughty Hanson & Co. Real Estate has refinanced the four remaining properties in its Finnish retail portfolio and will return euro 35 million ($44.5 million) to investors. When combined with the receipts from the sale of four assets, this amounts to an overall return to date of euro 51.1 million ($63.3 million) and represents a 1.4 times return on the cash investment as well as a gross IRR of 17%.

The portfolio, which is now 97% leased, comprises four assets:

  • Iso Omena Kauppakeskus. This is a 53,700-sm shopping center in Western Helsinki with a mix of strong national and international brands. Major tenants include H&M, Esprit and Bang & Olufsen. Key office tenants include GlaxoSmithKline and Michelin.
  • Kluuvi Kauppakeskus is an 18,000-sm center (including office buildings) in Helsinki’s CBD. Retail tenants include Body Shop, Indiska and McDonalds.
  • Megahertsi Kauppakeskus is a 6,700-sm center in a suburb of Helsinki. Key tenants include Alko (State Alcohol Monopoly) and a supermarket.
  • Pekuri City Block. The 22,600-sm shopping center, located in a prime city block in the northern town of Oulu, is anchored by a Stockmann store, the leading department store in the Baltics.
  • “Since our acquisition of the Finnish retail portfolio in 2004, we have initiated a successful value-enhancement program through active management and sold four non-core assets from the original portfolio,” recaps Nils Styf of Doughty Hanson. “We’ve taken advantage of the effect of this active management, and an improving retail investment market in Finland, to complete the refinancing.”

    The 2004 purchase Styf refers to was made from Ilmarinen Mutual Pension Insurance Co., as part of the restructuring of the Ilmarinen’s portfolio. It was the largest-ever cross-border real estate transaction in Finland.

    Want to continue reading?
    Become a Free ALM Digital Reader.

    Once you are an ALM digital member, you’ll receive:

    • Unlimited access to GlobeSt and other free ALM publications
    • Access to 15 years of GlobeSt archives
    • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
    • 1 free article* every 30 days across the ALM subscription network
    • Exclusive discounts on ALM events and publications

    *May exclude premium content
    Already have an account?

     

    GlobeSt

    Join GlobeSt

    Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

    • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
    • Exclusive discounts on ALM and GlobeSt events.
    • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

    Already have an account? Sign In Now
    Join GlobeSt
    Live Chat

    Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.