Nordic private equity real estate firm Slättö has bought an office property in Helsinki from Catella Real Estate AG (CREAG) for conversion into an aparthotel for an undisclosed amount.
The acquisition is Slättö’s second in the hospitality sector in Finland. For this project, Slättö has once again partnered with operator Bob W.
When the conversion is completed the property will offer 99 hotel apartments in Helsinki’s central business district.
Bob W specializes in short- and long-stay apartments and has properties in 16 cities across Europe.
Catella originally acquired the property in 2011 for the alternative investment fund Catella Scandia Chances.
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.
Renovations will begin in Q1 2024 and the hotel is expected to open to the public in Q2 2025.
What they said
Erik Möller, head of hotels at Slättö, said: “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”.
Emilia Malmi, CEO of Northern Europe at Bob W, said: "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."
Axel Bertram, portfolio manager at Catella Real Estate AG, said: "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.”