The Building Construction Association (TRT) is an industry organisation for businesses in the building construction sector, with more than 450 member enterprises including the largest construction firms in Finland and a nationwide collective of small and medium-sized house building contractors.
The head office of The Building Construction Association (TRT) at Unioninkatu 14 in downtown Helsinki was outdated, with building technology nearing the end of its lifespan. TRT required new functional premises, and was also seeking the best solution for its ageing property holding. Newsec was already an established and trusted advisor to TRT in such fields as property valuations, and we were prepared to supply a full advisory service covering everything from tenant representation to sale process management. These favourable experiences led TRT to select Newsec for its head office sale assignment.
It was clear from the outset that the best price could be secured for the property as a development project, rather than a cash flow property. We consulted the City of Helsinki urban planning agency concerning various development options for the site, preparing floor plans and illustrations of various uses. Provisional development plans concerning such aspects as the feasibility of alternative uses were distributed to investors with marketing materials.
Interest in the project from investors was very considerable, and many offers were received. Newsec managed to secure higher bids by successfully arranging two rounds of competitive offering. The site was eventually sold in July 2017 to Barings Real Estate Advisers for EUR 16.3 million, meaning approximately EUR 3,800 per square meter. TRT moved to new premises at the end of 2017, after which Barings launched a major renovation with a view to converting the site into a 120-bedroom business class hotel.