Slättö expands its presence in Finland, by acquiring an office property from Catella Real Estate AG (CREAG) for aparthotel conversion. When finalized, the property will offer 99 modern hotel apartments in Helsinki’s central business district. Slättö’s team has identified hotel real estate as a highly attractive niche in the Nordic real estate market providing interesting investment opportunities given the shortage of high-quality affordable accommodation and a need for product innovation in the industry.  

“The European and Nordic hotel markets are showing a strong performance, as travelling for short and long periods of time is increasing. There are significant value creation opportunities in apartment-hotel and long-stay properties that have high design standards and technology-driven operations,” says Erik Möller, Head of Hotels at Slättö.

Partnering with a leading industry player like Bob W, with essential sector expertise, is key to providing a competitive edge from both an investment and operations perspective.

"We are excited about Bob W's expansion into Helsinki's Kamppi district, a key location. The property will offer a unique, modern, high-quality hospitality experience. This enhancement of our partnership with Slättö not only boosts our presence in the Nordic region but also cements our position as a market leader,” says Emilia Malmi, CEO of Northern Europe at Bob W.

“We are very pleased to add another property to our partnership with Bob W. With two assets in the central business district of Helsinki, Slättö’s portfolio is an attractive investment proposition,” says Ilkka Salminen, Slättö’s Country Head in Finland.

Bob W specializes in short- and long-stay apartments. The company operates design-led, sustainability-focused properties in 16 cities across Europe. Each apartment incorporates its own bespoke local design and technology that give guests both the quality of a lifestyle hotel and the authenticity of a home. Bob W has established itself as a pioneer in sustainability, and the first international climate-neutral hospitality provider.

Catella Real Estate AG (CREAG) had originally acquired the property in 2011 for the specialized alternative investment fund Catella Scandia Chances.

"The sale of the property as a development project took place in a challenging market environment, even in Finland. Coupled with ongoing rental income during the operational phase, the sale profit yields a very favorable return on investment. The fund's liquidity position is strengthened, enabling portfolio optimization,” says Axel Bertram, Portfolio Manager at Catella Real Estate AG (CREAG)

The property will be refurbished and leased to Bob W, while maintaining Lidl as a ground-floor tenant. The 99-room hotel will feature a mix of mini studios and one-bedroom units, each equipped with a kitchenette. Its prime location ensures excellent public transport connectivity and makes it attractive for long-stay guests, with the central station just a 10-minute walk away.

The extensive conversion plans include renewing almost all HVAC systems for improved energy efficiency, replacing or repairing windows, roof and parking deck, and solar energy installation with the goal of achieving LEED Gold certification. 

Renovations will begin in Q1 2024 and the hotel is expected to open to the public in Q2 2025.