Private asset expert CapMan has acquired an educational building, office and school in two purchases in the Nordics.
CapMan Social Real Estate (CMSRE) acquired the historical office and educational property in Frederiksberg, Copenhagen, Denmark. It is currently fully let to Copenhagen Business School.
The investment, which is the second of the recently established fund, follows the strategy of building a diversified portfolio of social real estate properties across the Nordics.
The property, next to the Frederiksberg Gardens, consists of 19,300 square meters of lettable office and educational space in a former porcelain factory dating from 1882. It has since been converted into offices, classrooms, and lecture halls, preserving the original characteristics of the buildings.
Copenhagen Business School is one of the largest business schools in Europe with more than 22,000 students and 1,500 employees. The asset also includes 325 underground parking spaces, all of which are leased to CBS.
CapMan Real Estate improvements
CapMan Real Estate will perform accessibility improvements as well as energy efficiency improvements in alignment with the CRREM energy reduction pathway in the buildings. It also plans to pursue EU taxonomy alignment (climate change mitigation) and DGNB In-Use certification for the asset. The property currently holds energy performance certificate A (2010).
Peter Gill, Partner and Head of CapMan Real Estate Denmark, says, “We are glad to acquire this property which marks the second investment for the CMSRE fund and expands its portfolio in the Nordics. Porcelænshaven is a special property in a unique location and therefore it represents the type of asset we are looking for in this fund. We look forward to developing the asset to support the needs of the students, teachers and personnel at CBS.”
CMSRE which continues fundraising, targets €500 million of equity commitments and total investment capacity of nearly €1 billion. The recently established fund invests in properties that are used for providing essential public services across multiple sectors. It is looking to build a well-diversified portfolio of social real estate properties across Sweden, Finland, Denmark and also Norway.
CMSRE is classified as an Article 8 financial product under the Sustainable Finance Disclosure Regulation (EU). The fund is a German special investment fund. HANSAINVEST Hanseatische Investment-Gesellschaft mbH acts as the alternative investment fund manager (AIFM) of the fund. CapMan Real Estate acts as advisor for the fund.
The real estate assets managed by CapMan Real Estate currently amount to approximately €4.2 billion. The real estate investment team employs around 80 real estate investment professionals in Helsinki, Jyväskylä, Stockholm, Copenhagen, Oslo and also London.
The Seminaari school and plot
The CapMan Nordic Real Estate III fund (CMNRE III) acquired the Seminaari school and plot in central Hämeenlinna, Finland. It was sold by the University Properties of Finland.
It is the largest primary school in Hämeenlinna with approximately 750 pupils. The entire property is under a long-term lease to the City of Hämeenlinna. CapMan Real Estate plans to renovate one of the buildings and also improve the energy efficiency and accessibility of the other buildings.
The Seminaari school property in Kauriala consists of eight buildings, constructed between 1930 and 1984.
One building, originally completed in 1953, is currently undergoing a thorough renovation agreed with the City of Hämeenlinna. CapMan Real Estate will apply for BREEAM In-Use environmental classification of the properties, targeting at least level Very Good.
Attached to the property and as part of the acquired asset is also an unbuilt plot, designated for residential use in the master plan. CapMan Real Estate has agreed with the City of Hämeenlinna to discuss development opportunities for the plot this spring.
Largest primary school
Aleksi Konsti, Investment Director at CapMan Real Estate, says, “We are very pleased with this investment, which fits our fund’s investment strategy well. As the largest primary school in Hämeenlinna and due to its central location, the Seminaari school is a strategically important asset for the city. Our goal is to further develop the property for school use together with the City of Hämeenlinna, in order for the property to serve students and teachers in the area far into the future, something which the long lease agreement provides good basis for.”
Sanna Sianoja, CEO at University Properties of Finland, says, “It’s wonderful, that the City of Hämeenlinna gets an active owner as its new landlord. The Seminaari school was no longer in the core of the University Properties of Finland’s real estate strategy which is why we decided to sell the asset. We are pleased that the school will now become part of CapMan Real Estate’s portfolio.”
The investment is the fourteenth of the CapMan Nordic Real Estate III fund, which invests in the Nordic countries. The real estate assets managed by CapMan Real Estate currently amount to approximately €4.2 billion. The real estate investment team employs more than 70 real estate investment professionals in Helsinki, Jyväskylä, Stockholm, Copenhagen, Oslo and London.
