Varma is Finland’s largest earnings-related pension insurance company and also one of the country’s largest real estate investment companies, with a total property portfolio of more than EUR 3.5 billion and approximately 4,000 leased dwellings.
Kesko Corporation had redeveloped its former Head Office in the Katajanokka district of downtown Helsinki as three projects, constructing residential apartments for leasing that would remain the property of Varma, a hotel project for a hotel investor, and a residential section that would be sold to an investor for further development and final sale to consumers.
Varma owned a complex development project, of which it intended to retain part of one block. Using a consultant in the sale of part of one block enabled Varma to focus entirely on developing the block as a whole, and promoting the development of the part that the company would retain. The deal involved numerous interlinked elements, such as demarcating and co-ordinating the planning of three construction projects during an ongoing sale.
Newsec arranged a full-service sales process from preparation to final sale completion, enabling Varma to focus on its core operations and promoting the overall development project.
The project involved numerous uncertainty factors associated with the need to upgrade building permits and work with a continually evolving planning situation. Newsec maintained its grasp of the planning situation at all stages by actively communicating with all stakeholders, such as the block architect and the City of Helsinki. The experience of the Newsec project team in correspondingly complex development project sales enabled it to anticipate problems and resolve them promptly.
The sale price of the site clearly exceeded targets with respect to part of the block for sale. A structured sale procedure ensured optimal pricing for the site, with the experienced and proactive Newsec project team also helping Varma to proceed efficiently in developing the entire block according to the agreed timetable.