Union Investment has received planning permission for the strategic repositioning of the listed "Proffa" office building in Helsinki city centre. The approximately 3,160 m² of office space will become 84 hotel rooms. A 30-year lease agreement has already been signed with the experienced hotel operator Ruby Group for this purpose. In addition, part of the commercial space on the ground floor will be retained, while some will be repositioned. Union Investment is investing around 11.5 million euros in the transformation. Completion is scheduled for the end of 2027.
"The transformation in Helsinki is a current example of our active asset management approach. Since the implementation of modern office concepts is significantly more difficult due to the structural layout of the building, due to its former residential use, the proportionate protection of historical monuments and many load-bearing walls and angled areas, we have put the property strategy to the test and, among other things, examined the potential for hotel use. The location, market and profitability analysis as well as the property conditions are to be assessed positively. Together with the hotel concept of the Ruby brand, this results in a strategic fit for this property. We are very pleased to have won the Ruby Group as an experienced operator for this property," says Bastian Stuhke, Senior Asset Manager Hospitality at Union Investment.
"Proffa" has been part of the portfolio of the open-ended real estate special fund DIFA Fund No. 3 since 2019. The change of use ensures the fund a stable cash flow in the long term. The quality of the property will be significantly increased and the framework conditions for new and re-letting of the existing space on the ground floor will also improve as a result of the transformation.
"The complexity of the building structure requires special know-how in the design. After intensive analyses of various hotel operator concepts, the Ruby Group was chosen because the company already has experience with the conversion of historic buildings at central locations. In addition, a general contractor was recently commissioned who has already successfully carried out high-quality hotel conversions," says Thomas Stancel, technical project manager at Union Investment.
"Proffa" was planned in 1900 by the well-known architect Theodor Höijer as a residential building, expanded several times, converted for office use in the 70s and last modernized in 2008. The property is located in a prominent corner location in the city center of Helsinki. Within walking distance is the well-known Kamppi Center with excellent public transport connections.
