Regenero Finances Development Projects in Keilaniemi
Keilaniemen kiinteistökehitys Oy, a wholly owned subsidiary of Regenero, issued a senior secured bond of EUR 100M on May 31th. The bond matures in May 2021 and carries a coupon of 4.000 percent per annum. The bond issue is the first large real estate development bond in Finland.
On October 31, 2017, Regenero signed an agreement concerning the acquisition of Fortum’s former headquarter properties, including land plots and the companies that own the buildings, at Keilaniementie 1-3, Espoo. The total land area of the acquired properties was approximately 25,000 square meters with over 15,000 square meters of unused residential building right. Regenero’s aim is to develop high quality office premises at a location with excellent public transportation and car connections. YIT has the right to purchase the new construction right from Regenero. The operating model of the joint venture includes that YIT will implement the construction work related to the project as a turnkey contract and is responsible for the implementation planning of the project.
The properties in question hosts one of the most well-known office buildings in the Helsinki Metropolitan Area, Fortum’s former 20-storey headquarters including the lower Keilalampi building in the rapidly developing Keilaniemi area, that has attracted the headquarters of some of the largest and most reputable companies in Finland. Regenero’s investment plans include a thorough renovation and modernization of the premises at Fortum’s former headquarters building. The buildings’ lettable area is 35,000 square meters comprising of modern office and retail space. After the refurbishment, Regenero is committed to pursue the LEED Gold certificate for the Fortum’s former headquarters building. As an example of excellent interest, Accountor recently signed a 10-year lease for premises of 11,000 square meters.
The issuer, Keilaniemen kiinteistökehitys Oy is a wholly owned subsidiary of Regenero Oy, the joint venture formed by YIT and HGR Property Partners. Regenero was founded in 2016 as a property development company focusing on executing large office real estate development projects enabling each of YIT and HGR to focus on their strengths in property development.
Maria Olsson Äärlaht