HGR Property Partners Oy has agreed to sell a major office and retail property development to Public Property Invest ASA (“PPI”), a Norwegian real estate company listed on the Oslo Stock Exchange. The property, located in Otaniemi, close to the Aalto University campus area in Espoo.
The project covers approximately 15,700 square meters of lettable space. The development will consist mostly of newly built premises, complemented by the full renovation of an existing structure to meet modern standards and ambitious ESG targets. Construction has already begun, with full completion expected by the end of 2026.
The property is fully pre-let under long-term lease agreements to Relex Solutions Oy and HOK-Elanto, a major cooperative retail chain. Relex Solutions is a Finnish technology company specializing in software solutions for supply chain, retail planning, and workforce optimization. Founded in 2005, Relex has grown into one of Finland’s leading international tech success stories, serving global retail and consumer goods brands.
The average unexpired lease term exceeds 10 years, providing a strong, stable foundation for future operations.
The total investment cost at completion will amount to approximately EUR 79 million. Payments will be made progressively according to the project’s completion stages, with an initial EUR 10 million transaction expected to close on 30 April 2025. Upon completion, the property is estimated to generate an annual net operating income (NOI) of approximately EUR 4.9 million.
This results in an initial yield of approximately 6.2%. Based on the total lettable area of approximately 15,700 square meters, the investment corresponds to a price of roughly EUR 5,030 per square meter.
This acquisition strengthens PPI’s presence in Espoo following the earlier acquisition of a nearby educational facility.
The property aims to achieve the highest environmental and wellness standards, targeting an A-level energy classification, LEED Platinum environmental certification, and WELL Platinum certification. Additionally, on-site energy production, such as solar panel installations, will further enhance the property’s environmental performance.