SENATE PROPERTIES FOR SALE: TOPELIUKSENKATU 41b INVESTMENT OPPORTUNITY IN HELSINKI

Transcription

1 SENATE PROPERTIES FOR SALE: TOPELIUKSENKATU 41b INVESTMENT OPPORTUNITY IN HELSINKI

2 Table Of Contents Senate Properties, Topeliuksenkatu 41b TABLE OF CONTENTS 1. Introduction 2. Investment Highlights 3. Sales Process 3.1 Schedule 3.2 Due Diligence Materials 4. Market Conditions 4.1 Finland 4.2 Helsinki 4.3 Average Office Rents In Helsinki Metropolitan Area 5. Property 5.1 Micro-location 5.2 Town Planning 5.3 Building Description 6. Financial Overview 6.1 Rental Agreements And Main Tenant 6.2 Net Operating Income 7. Details

3 PASILA VALLILA OLYMPIC STADIUM MEILAHTI TÖÖLÖ KAMPPI CENTRAL RAILWAY STATION PUNAVUORI SENATE SQUARE KATAJANOKKA TOPELIUKSENKATU 41b IS LOCATED IN MEILAHTI, HELSINKI, WITH GOOD PUBLIC TRANSPORT AND ROAD CONNECTIONS.

4 BUILDING GROSS AREA PLOT AREA 12,363sqm 2,394 sqm

5 1. Introduction Senate Properties, Topeliuksenkatu 41b 1. INTRODUCTION Senate Properties is selling property with an office building completed in 2000 and renovated in The building is generally known as the laboratory and office building of the Finnish Institute of Occupational Health. The 2,394-sqm plot is occupied by a five-storey building with a gross area of 12,363 sqm. The building was designed by architects Hyvämäki- Karhunen-Parkkinen. The property is located in Meilahti, Helsinki at Topeliuksenkatu 41b, in close proximity to the Tullinpuomi area. The property is owned by the Finnish state, and Senate Properties is representing the owner. Senate Properties is a state-owned business governed by the Ministry of Finance. It is responsible for selling state-owned property assets.

6 2. Essential Information Senate Properties, Topeliuksenkatu 41b 2. ESSENTIAL INFORMATION Property Unique opportunity to invest in a building renovated to a high technical standard Central location in close proximity to the Meilahti hospital area Good public transport and road connections Essential services close by Rental agreement information The property has been fully rented to one tenant Long rental agreement ending on 31 March 2026 at the earliest Net profit in 2016 (NOI 1) approx. 2,113,000 (budget) The tenant is responsible for maintenance costs, excluding property tax and insurances and any major renovations Development opportunities The technical solutions in the building allow it to be developed for multipurpose use Located in a dynamic area close to the centre of Helsinki

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8 3. Sales Process Senate Properties, Topeliuksenkatu 41b 3. SALES PROCESS The property will be sold using a two-phase bidding competition. Please send letter of intent by 12. pm on 10 May to: Kari Kervinen Senate Properties P.O. BOX 237 (Lintulahdenkatu 5 A) FIN HELSINKI Please mark the envelope Helsinki Topeliuksenkatu 41b

9 3. Sales Process Senate Properties, Topeliuksenkatu 41b Senate Properties reserves the right to request offers from other parties in addition to those who have sent their letter of intent by the due date. Final detailed offers will be requested from two to five senders of the letters of intent that were deemed most suitable following a negotiation period in May June. sale will require approval from the Finnish Parliament. According to the information currently available, a decision is expected by early December at the latest. Senate Properties reserves the right to approve or decline offers, or to request amendments. After the final offers have been processed, the winning bidder will sign a preliminary property sale agreement or a final contract of sale. The tentative sales decision will be made by the board of Senate Properties. The final property

10 3. Sales Process Senate Properties, Topeliuksenkatu 41b 3.1 SCHEDULE March April May June PHASE 1 WEEK Marketing and distribution of the sales material Indicative bids Site visit Evaluation of bids and selection of parties for the next round PHASE 2 WEEK Distribution of possible additional information Final bids Selection of a buyer Selected party for due diligence CONTRACT NEGOTIATIONS WEEK Final negotiations Signing of SPA DECISION AND CONCLUSION OF SALE Senate board decision week 34 (23 August 2016) Sales decision by Council of State week 37 (estimate) Sales decision by parliament week 48 (estimate) Closing week 50 (estimate)

11 3. Sales Process Senate Properties, Topeliuksenkatu 41b 3.2 DUE DILIGENCE MATERIALS Due diligence materials are available from the databse. Database credentials are available upon request from Samuli Ronkainen,

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13 4. Market Conditions Senate Properties, Topeliuksenkatu 41b 4.1 FINLAND The Finnish commercial real estate market is at its strongest since 2007 with the commercial property market benefiting greatly from the low interest rate environment. Numerous investors are looking to deploy capital, and the Helsinki Metropolitan Area office market is the most popular sector among both national and international investors. Typically, the Helsinki Metropolitan Area dominates the market contributing to around 50% 60% of the total volume annually. The direct transaction volume in 2015 totalled ca. EUR 5.2 billion, which is up by 22% from This very strong result was due to both increased demand from both foreign and domestic investors, however especially from foreign investors. In 2015, foreign investors share of sales volume increased to 48%, in comparison to ca. 35% for the previous 2 years. Currently foreign investors are mainly Scandinavian, especially Swedish, and from other countries in Europe; almost all of the foreign buyers in 2015 were European, with the exception of a few sales to American buyers. There has been yield compression across all property type sectors over the past year, which has ranged from ca. 10 to 75 basis points (most typically 25 to 50 basis points), depending on the market segment and investment quality. The most prime yields have not moved greatly, since they were already at a relatively low level a year ago. However, more movement has been seen in investments that are not prime, but which still have solid fundamentals. Source: CBRE

14 4. Market Conditions Senate Properties, Topeliuksenkatu 41b 4.2 HELSINKI Office investment demand in the Helsinki Metropolitan Area continued strong in H with sales volume of ca. 533 million, which is up by 17% from H and 53% from H The prime yield level in the CBD is currently 4.25%, while the prime yield level elsewhere in the HMA is ca. 5.5%. These are down by 10 bps and 30 bps respectively from 1 year ago. The most sales activity took place in Helsinki outside the CBD and in Espoo, due to limited stock availability in the CBD. Investors are still favouring low risk assets, and most of the sold assets were Core or Core Plus assets, however increasing activity is also seen for Value Add and Opportunistic assets, which have also started increasingly to be of interest to international buyers. Market rental level has remained quite stable in the CBD during H The prime office gross rent level in the CBD is currently ca. 37/sqm/month and KTI reports an average office rent level of ca. 27/sqm/month. Source: CBRE

15 4. Market Conditions Senate Properties, Topeliuksenkatu 41b 4.3 AVERAGE OFFICE RENTS IN HELSINKI METROPOLITAN AREA 30 / sqm / month Source: KTI 25 Helsinki Centre 20 Vantaa 15 Espoo Helsinki (excl. Centre) F 2017F Metropolitan Area

16 5. Property Senate Properties, Topeliuksenkatu 41b 5.1 MICRO-LOCATION The property is located in the Meilahti neighbourhood of Helsinki, approximately 3.5 kilometres from the city centre. The property is close to, for example, the following: Meilahti hospital area, office buildings and residential buildings. The property is in a very central and prominent location in Helsinki, especially when considering the tenant s area of business. It is easily reachable by public transport and car, with main roads nearby, allowing for quick access to Helsinki-Vantaa airport.

17 5. Property Senate Properties, Topeliuksenkatu 41b 5.2 TOWN PLANNING The plot has town plan in place (dated 11 March ). In the town plan, this plot is listed as a YTU block, meaning a block reserved for buildings supporting research work. Building rights on the plot total a floor area of 10,000 sqm, of which 7,700 sqm is reserved for above ground and 2,300 sqm below ground. The parking space requirement is one parking space per 300 sqm of floor area. The parking spaces of the plot can be placed on neighbouring plots 520/2 and 520/19. A total of 34 parking spaces in the block will be transferred as part of the deal.

18 5. Property Senate Properties, Topeliuksenkatu 41b 5.3 BUILDING DESCRIPTION An office building built in 1991 is located on the plot. A major conversion was finished in The building is a five-storey steel-concrete laboratory and office building with two basement floors. The attic floor contains technical facilities, such as ventilation machinery. The Topeliuksenkatu side of the building is mainly in office use. On the courtyard side, in the deeper part of the building, there are laboratories and other research facilities. A tall, v-shaped connecting section functions as an entrance hall with skylight roofs and lifts. The exit stairs are separate from other facilities.

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20 6. Financial Overview Senate Properties, Topeliuksenkatu 41b 6.1 RENTAL AGREEMENTS AND MAIN TENANT The whole property has been rented to the Finnish Institute of Occupational Health, an independent public corporation operating under the governance of the Ministry of Social Affairs and Health. The institute is focused on multidisciplinary research and development. Research results are provided to workplaces through expert services, training and informational influence. The institute s aim is to make the workplace promote health and improve employees abilities, not to compromise them. notice is 31 March The total rented surface area is 9, sqm. The tenant is responsible for maintenance costs, excluding property tax and insurances and any major renovations. The rental agreement is not subject to VAT. Rental rates and other specifics are available in the tenant listing. Rates are indexed by the cost-of-living index. The agreement with the Finnish Institute of Occupational Health is valid until further notice. The institute has a notice period of 12 months, and the first possible date for

21 6. Financial Overview Senate Properties, Topeliuksenkatu 41b 6.2 NET OPERATING INCOME NET OPERATING INCOME / NOI / EUR 2015 / EUR 2016 BUDGET / EUR TURNOVER Rents 1,935,390 1,733,654 2,220,000 MAINTENANCE COSTS Maintenance Water and wastewater Property tax -106, , ,500 PROFIT 1,828,057 1,626,737 2,113,000 The maintenance costs do not include the owner's administration expenses. All calculated totals are VAT-free.

22 7. Details Senate Properties, Topeliuksenkatu 41b 1st FLOOR 2nd FLOOR 29.9 hum2 PAJA 36 hum hum2 17 hum hum hum hum2 PAJA 31.9 hum2 PAJA hum2 hum hum2 4.7 hum2 PUKU PAJA 8.3 hum2 8.2 hum hum2 3 hum2 2.5 hum2 3.8 hum hum2 4.9 hum2 SIIVO SUIHK 6.1 hum hum2 5.6 hum hum hum hum hum2 4.5 hum2 VALVO 4.7 hum hum2 hum2 VALVO 5.1 hum hum hum2 hum2 KOPIO 4.5 hum2 4.5 hum2 36 hum2 17 hum hum hum2 5.6 hum hum hum2 4.5 hum2 VALVO 2.6 hum2 4.5 hum hum hum hum2 VALVO 54.4 hum hum2 51 hum hum2 16 hum hum2 LUKUS 19.3 hum2 9.6 hum hum hum2 SEURU 11.7 hum hum2 ATK 33.1 hum hum2 ATK 54.4 hum hum2 16 hum hum2 9.6 hum hum hum hum2 ATK 17.6 hum2 ATK 29.2 hum2 4.9 hum2 2.8 hum2 ARKI 27.4 hum hum hum hum2 hum hum hum2 29 hum hum hum hum hum hum hum2 67 hum2 21 hum2 SIIVO 11.5 hum hum2 hum212.8 hum hum hum hum hum hum hum hum hum2 SEURU KOKO hum2 4.1 hum2 8.9 hum2 KOPIO hum hum2 hum2 4.3 hum2 1.1 hum hum2 hum2 ARKI KOPIO ARKI VALVO 64.1 hum2 121 hum hum hum2 KOKO hum hum2 AULAS 19.5 hum2 3.5 hum2 KOPIO 26.4 hum hum hum2 ARKI 4.7 hum2 6 hum2 SIIVO 11.5 hum hum hum hum hum2 5.4 hum hum hum hum2 SEURU 7 hum2 KOPIO 4.8 hum2 4.3 hum2 4.3 hum2 1.1 hum hum2 ARKI ARKI VALVO 121 hum hum2 KOKO 14.1 hum hum hum2 3.5 hum2 KOPIO 20.2 hum2 6.4 hum2 ARKI 5.9 hum hum2 hum2 7.1 hum2 11 hum2 11 hum2 11 hum2 11 hum2 11 hum2 VARA 3.8 hum23.8 hum2 VARA VARA 11 hum2 11 hum2 11 hum2 7 hum2 AULAS 11.2 hum hum hum hum hum2 0 10,0 m 0 10,0 m TYÖTERVEYSLAITOS, ATORIORAKENNUS, 2.Kerros, (Digitoitu) TYÖTERVEYSLAITOS, ATORIORAKENNUS, 2.Kerros, (Digitoitu) 0 10,0 m TYÖTERVEYSLAITOS, ATORIORAKENNUS, 1.Kerros, (Digitoitu)

23 7. Details Senate Properties, Topeliuksenkatu 41b 3rd FLOOR 4th FLOOR 47.4 hum hum hum hum hum hum hum2 39 hum2 29 hum hum hum2 2.8 hum hum hum2 3.8 hum hum2 5.8 hum hum2 5.2 hum hum2 2.6 hum2 VARA 5 hum2 4.4 hum2 4.5 hum2 4.5 hum hum hum hum hum2 1.2 hum2 7 hum2 2.6 hum2 6.3 hum2 6.2 hum2 VARA 4.5 hum2 8.9 hum2 4.5 hum hum2 KOPIO 18.1 hum hum hum hum2 5.7 hum2 36 hum hum2 3.6 hum2 3.5 hum hum hum2 29 hum hum hum2 5.9 hum2 SIIVO 6.8 hum2 VALVO 42.1 hum2 KEITT 29.2 hum hum hum hum hum2 14 hum hum hum2 4.7 hum2 6 hum2 SIIVO 5.4 hum hum hum2 VALVO 28.6 hum2 SEURU 28.3 hum2 KOKO 16.5 hum hum hum hum2 KOPIO 48.8 hum hum2 4.7 hum2 6 hum2 SIIVO 5.4 hum hum hum hum2 KOKO 28.3 hum2 KOKO 16.5 hum hum hum hum hum2 3.1 hum2 7 hum2 KOPIO 4.8 hum hum2 3.6 hum2 KOPIO 6.6 hum2 ARKI 19.2 hum2 0.7 hum2 0.7 hum2 6.6 hum2 KOPIO 4.8 hum hum2 ARKI 15.7 hum hum hum hum2 LUKUS 22.4 hum hum hum2 10,0 m TYÖTERVEYSLAITOS, ATORIORAKENNUS, 3.Kerros, (Digitoitu) 0 10,0 m TYÖTERVEYSLAITOS, ATORIORAKENNUS, 4.Kerros, (Digitoitu)

24 7. Details Senate Properties, Topeliuksenkatu 41b 5th FLOOR 6th FLOOR 9 hum2 8.4 hum hum hum hum hum hum hum hum hum hum hum hum hum hum2 4.5 hum2 5.1 hum hum2 2.6 hum2 4.5 hum2 8.6 hum2 4.7 hum hum hum2 8 hum2 4.6 hum2 VALVO 10.5 hum hum hum hum hum hum hum2 15 hum hum hum2 9.9 hum hum hum hum hum2 4.7 hum2 5.8 hum2 SIIVO 11.7 hum hum hum hum hum2 5.4 hum hum hum hum2 KOKO 28.3 hum2 KOKO 15.9 hum hum hum hum hum hum hum2 4.3 hum2 ARKI 4.3 hum2 ARKI 6.7 hum2 KOPIO 4.8 hum2 1.1 hum2 VALVO hum2 3.5 hum2 KOPIO 5.8 hum2 ARKI hum hum hum hum hum2 10,0 m TYÖTERVEYSLAITOS, ATORIORAKENNUS, 5.Kerros, (Digitoitu) 0 10,0 m TYÖTERVEYSLAITOS, ATORIORAKENNUS, 6.Kerros, (D

25 7. Details Senate Properties, Topeliuksenkatu 41b 1st BASEMENT LEVEL 2nd BASEMENT LEVEL hum2 TALLI 24.5 hum hum hum hum hum2 2.5 hum2 JÄTE 48.5 hum2 KOPIO 16.6 hum2 TUTKI 15.4 hum hum hum2 0.6 hum hum2 9.6 hum2 VALVO 5.1 hum hum hum hum hum2 0.6 hum hum hum hum2 7.6 hum2 18 hum2 SUIHK 9.8 hum2 8.5 hum hum hum hum2 4.1 hum2 VARA 45.8 hum2 4.2 hum hum2 VARA JÄTE 25.3 hum2 6.4 hum2 VALVO 3.1 hum2 VARA 47 hum hum2 3.1 hum2 4.7 hum2 5.5 hum2 0.3 hum2 1.2 hum2 VARA 1.2 hum2 KEITTJÄTE 4.8 hum2 PUKU 6.7 hum hum hum2 VARA 5.3 hum hum2 VARA SUIHK VOIM 2.7 hum2 1.7 hum hum2 SAUNA 3.7 hum2 0.4 hum2 JÄTE 92.2 hum hum2 JÄTE 9.5 hum hum2 8.5 hum2 3.8 hum2 8.3 hum hum hum hum2 18 hum hum2 3.8 hum hum2 8.8 hum2 4.9 hum2 3 hum2 25 hum2 SIIVO 5.5 hum hum hum2 19 hum hum2 8.3 hum hum hum2 VSS hum2 VSS 18.7 hum hum hum2 6 hum hum hum2 5.9 hum2 SUIHK 23.7 hum2 KOPIO 32 hum2 9.8 hum hum2 SUIHK UVARA 71.8 hum hum hum2 6.2 hum2 3.2 hum2 5.1 hum2 UVARA 11.2 hum hum hum2 5.7 hum2 18 hum2 5.9 hum2 VARA 1.7 hum2 SUIHK 12 hum2 6.3 hum2 STERI 21.3 hum2 UVARA 13 hum hum2 4.9 hum2 JÄTE 8.6 hum hum2 PUKU 4.9 hum hum2 VALVO UVARA 78.4 hum2 2.6 hum2 2.4 hum2 10 hum hum hum hum2 7 hum2 SIIVO PUKU 6.7 hum2 3.8 hum2 PUKU SUIHK SUIHK hum2 ARKI 20,0 m 0 10,0 m TYÖTERVEYSLAITOS, ATORIORAKENNUS, Kellari2, (Digitoitu) TYÖTERVEYSLAITOS, ATORIORAKENNUS, Kellari1, (Digitoitu)

26 DETAILS Sales Manager Kari Kervinen Sales Manager Esa Pentikäinen