Public Property Invest ASA (PPI), a Norwegian property company specializing in social infrastructure, has acquires two adjacent elementary school properties in Espoo, Finland, for EUR 37.1 million. The properties, which are being purchased from eQ Community Properties, are located at Lämpömiehenkuja 2 and 3 in the Otaniemi district, an area known for its proximity to Aalto University.
The properties, totaling approximately 10,000 square meters, were refurbished for their current use in 2018-2019 and are fully leased. The City of Espoo, Finland’s second-largest municipality, occupies 94% of the space, operating a school and kindergarten. The remaining space is leased to Fat Lizard, a well-known microbrewery located in Lämpömiehenkuja 3. Both properties are certified BREEAM Very Good, underscoring their high environmental and sustainability standards. The annual gross rental income from the properties is approximately EUR 2.93 million, with an average unexpired lease term of 14 years.
Ilija Batljan, Chief Investment Officer of PPI, emphasized the strategic importance of this acquisition. “This aligns perfectly with PPI’s strategy to grow as a leading consolidator of social infrastructure properties in the Nordics. Espoo is Finland’s second-largest and fastest-growing city, and these properties are located in the highly attractive Otaniemi university area. This transaction marks a very appealing entry into the Finnish market,” Batljan stated.
Jennifer Eloheimo, Investment Director at eQ Community Properties Fund, commented on the transaction:
“This transaction provides concrete evidence that public use properties in good locations have robust investor demand even under current market conditions with limited liquidity. We want to thank PPI for good cooperation, and it is great to have a new well-established investor in the Finnish public property segment. We also want to thank JLL for assisting us again in this transaction.”
To ensure efficient local operations, PPI has partnered with Mrec Investment Management Oy, a local operating partner in Finland. To ensure effective local operations, PPI has partnered with Mrec Investment Management Oy as its local operating partner in Finland.
The seller’s commercial advisor for the transaction was JLL, with legal advice provided by Avance. According to JLL, the investment attracted strong interest from Nordic and European investors, highlighting the appeal of public-use properties in prime locations.
Public Property Invest ASA is a listed Norwegian company with a long-term focus on owning, operating, and developing social infrastructure properties in a sustainable manner. Its portfolio primarily consists of community service properties with public-sector tenants, centrally located in major Norwegian cities. These properties house essential public services such as police stations, courts, and healthcare facilities. This acquisition represents a significant step in PPI’s expansion into Finland and reinforces its commitment to sustainable growth in the Nordic region.