Bread Factory, Helsinki, Finland

Background and Opportunity

• Commitment of €7m Revcap equity to the purchase of an attractive 13,300m² loft style office property in the northern part of Helsinki’s CBD
• The property had been owned and managed by a public entity and was 10% vacant upon purchase with visibility on another 20% becoming vacant within 6 months
• The JV’s business plan was to invest capital to refurbish the property in order to attain market rents and to re-let the property whilst enjoying a substantial income stream

Transaction Progress

• Leasing generally progressed ahead of underwriting as leases were re-geared and new tenants sourced
• Successful pilot to convert one floor to co-working space generated higher income at lower capex than underwritten

Current Status

• The property was sold to an institutional investor generating a 5.1x equity multiple / 41% IRR to KHCP IV