Finnish consortium invests in shopping center development

A Finnish consortium comprising Ilmarinen Mutual Pension Insurance Co., LocalTapiola and OP-Pohjola Group has purchased a 60 percent interest in a retail development in Finland from SRV. The total value of the shopping center and parking facility investment is €480 million ($524 million), of which €240 million ($262 million) will be financed with the owners’ capital investments.

This is the largest single-asset transaction ever in Finland, according to JLL, which represented the seller.

Construction has started on the REDI project, which is located in the Kalasatama submarket of Helsinki. A €225 million ($246 million) project credit agreement has been signed with a banking syndicate to construct the shopping center and parking facility parts of the project.

SRV retains a 40 percent interest in the venture. Ilmarinen Mutual Pension Insurance holds a 30 percent interest, LocalTapiola has a 15 percent interest, and OP-Pohjola Group a