Riihitontuntie 1, Vantaa
Riihitontuntie 1 is a 14,500 sq m building comprising two floors of retail space and a warehouse occupied by a number of retailers. It is located in Varisto, which is an important retail hub for home furnishing and furniture businesses in Helsinki and has excellent transport links with one of the city’s major ring roads.
The asset forms part of European Commercial Real Estate Limited (ECREL), a portfolio of industrial and mixed commercial assets which was originally a workout mandate.
When the Finnish asset management team assumed management responsibility for the asset, it had a 33% vacancy rate and a weighted average lease expiry of 2.8 years. The property needed active asset management to reposition it as a Core+ asset.
The team negotiated with the main tenant, Kruunukaluste, on a lease extension and relocation to the first floor, which filled the void on that space. A new 10 year lease was signed with Tokmanni Oy, the largest discount retailer in Finland, who commenced occupation after Cromwell delivered a fit-out exactly to their required specification and schedule.
Having decreased its vacancy from 33% to 5% and increased its weighted average lease expiry from 2.8 to 5 years, the asset’s value has increased by 60%.