The transaction was completed on the 7th of July 2021 with a property fund advised by Morgan Stanley Real Estate Investing (MSREI). MSREI, through the funds that it manages, has previously acquired over 2,000 residential units in Finland through multiple acquisitions. Premico will manage the new acquisition.
The building is located on the corner of streets Museokatu and Cygnauksenkatu. Constructed in 1913, the building has been in both residential and office use during its history.
In 2020 the Kvs Foundation became the administrator and operator of The Southern Helsinki Adult Education Centre (Etelä-Helsingin kansalaisopisto). The premises in the Museokatu property became too small, and the Kvs Foundation moved to a new address in Bulevardi.
Later in 2020, the main tenant of the building ended its operation, which was the final trigger for the Kvs Foundation to initiate the sales process of the property.
“Being a property owner is not a part of the Kvs Foundation’s core operations, which is why our board made the decision regarding the disposal of the property in fall 2020. Our goal was to find a new owner to cherish the building’s honorable history in one of the most desired locations in Helsinki,” says Lauri Tuomi, CEO of the Kvs Foundation.
“We believe that the Helsinki area shows long-term potential and benefits from positive demographic and urbanisation trends. This asset fits our core strategy of acquiring assets in prime, central locations. We are pleased to have added this asset to our Finnish residential portfolio,” says Ulf Pleschiutschnig, Managing Director at Morgan Stanley & Co-Head of European Real Estate Investments.
The Kvs Foundation was advised by CBRE as financial advisor and Castrén & Snellman Attorneys as legal advisor.