Public Property Invest (PPI) has acquired two modern healthcare and community service properties in Vantaa, for a total property value of EUR 63 million. The transaction reflects a price of approximately EUR 4,700 per m². The seller was the eQ Community Properties Fund, with whom PPI also completed a transaction earlier this year involving a school and kindergarten property in Espoo.
The properties are located at Väritehtaankatu 8 in the Tikkurila district of Vantaa. Completed in 2019 and 2021, they offer a combined lettable area of approximately 13,520 square metres. Strategically positioned along Finland’s main railway line—just 15 minutes from Helsinki’s central business district—the assets benefit from direct access to Tikkurila train station, the third busiest in the country. Both properties are modern, flexible, and environmentally certified with BREEAM Very Good, LEED Platinum, and EPC B ratings.
One of the buildings is a specialist hospital fully leased to Mehiläinen under a 12-year remaining lease term. Mehiläinen is one of Finland’s largest and fastest-growing private healthcare providers. The second building is a fully leased multi-tenant property, with major tenants including the City of Vantaa, Forenom, Nordea, Terveystalo, and Kesko. It also provides further expansion opportunities for Mehiläinen. The buyer has reported that the properties generate approximately EUR 5.8 million in gross annual rental income.
Indicative Net Initial Yield Estimate – Speculation
While net rental income has not been disclosed, the gross rental income of EUR 5.8 million combined with a reasoned assumption of operating expense levels allows for a speculative estimate of the net initial yield.
Assuming operating expenses in the range of EUR 6–8 per square metre per month, the total annual operating costs would be approximately EUR 0.97–1.30 million (based on 13,520 m²). This assumption reflects the likelihood that a portion of the tenants are not VAT registered, meaning the full VAT on operating expenses cannot be deducted.
Deducting these costs from the gross rental income implies an estimated net rental income in the range of EUR 4.5–4.83 million annually.
Based on the acquisition price of EUR 63 million, this would result in an indicative net initial yield of approximately 7.1%–7.7%.