Union Investment acquires Aura office property in Helsinki

Union Investment has officially taken ownership of the Aura office building in Helsinki, adding it to the portfolio of the open-ended special real estate fund UII EuropeanM. The prime office property, located in the rapidly growing Ilmala district near Helsinki city center, was acquired as a planned development in 2022. Union Investment has invested over €78 million in the project.

“The successful completion of the Aura office building enhances the risk resilience of our portfolio and further diversifies our tenant base. The stable cash flows expected from this property will positively impact the income of UII EuropeanM,” said Michael Kammerzell, fund manager at Union Investment.

The Aura building offers approximately 11,700 square meters of rental space, with 9,000 square meters dedicated to office use. The flexible floor plans can accommodate both large and small tenants. The ground floor features a restaurant with a terrace, several conference rooms available for rent, and a few small retail units. The property is also seeking LEED Gold certification, underscoring its commitment to sustainability.

Currently, the building is 78% occupied, with floors 3 to 5 leased to a state-owned enterprise under a 15-year contract. To cover the remaining vacant space, the vendor, Hartela Etelä-Suomi Oy, has provided a one-year rental guarantee.

“We anticipate that the remaining space will be quickly leased due to Ilmala’s low vacancy rates, the building’s appealing and adaptable architecture, and its excellent transport links,” said Christiane Bührsch, head of Asset Management Europe 1 at Union Investment.

With the acquisition of Aura, Union Investment’s portfolio in Finland now includes 10 properties, encompassing seven office buildings, a retail property, and two residential buildings, all located in Helsinki, with total assets under management reaching €830 million.