Property Brochure

Property Brochure
Havukoski
Conorin Ltd
Confidential
1
Summary
The whole complex consists in1983 constructed building which is:
Leased completely
Approximately 10 500 square meters
Construction right which is 49 000 square meters
Investor gets cash flow regularly from the whole investment
Yield / Year
Building
910,000 €
Rent on land
286,000 €
Total
1,196,000 €
Costs
160,000 €
Net rent
1,036,000 €
Value of building:
7,850,000 € (9,6% yield)
Value of construction right:
6,000,000 € (4,8% yield)
Sales price:
13,850,000 €
(Investment calculation on the last page)
2
Havukoski industrial area
Halmekuja 2
3
Description
The new development will be located in Southern Finland, in the city of Vantaa.
The exact location is in the industrial area of Havukoski. The totality consists the
existing building and 6-7 new buildings. According to the preliminary property
utilization plan, there can be built 6-7 new industrial buildings on the site. Size of
these buildings will be between 3500 - 4700 sq m.
The purpose is to build the industrial premises in stages, according to the rental
market situation and need, so that the last buildings would be completed in
2011-2012. During the processing and execution, the customers and flexibility
are the most important baselines. The future customers and the tenants are the
ones who determinate the frames for the premises. This will guide the extension,
equipment and special features of the coming building projects.
4
Determination of prices
The year 2008 on the real estate investment market has been busy. The total
volume of property transactions rose already with the first quarter to more than
two milliard. Construction of the premises is still strong. The number of office
spaces has risen a considerably to the metropolitan area and there are large
projects being planned for the retail business. In the best areas and premises the
level of rents is rising all the time.
Source: KTI Market Review, Spring 2008
Demand for the premises
Vacancy rate with 100 sq m production
spaces is 1 % at the moment, so need for the
premises is high.
Helsinki metropolitan area is expanding
beyond the Helsinki Vantaa airport area.
Industrial, logistic and commercial activities
are looking for new spaces.
5
Rental increase
Attractive yields have been one of the major drivers of international
investors’ interest in the Finnish property market. Despite the rapid yield
compression that started in 2004, yields have remained well above those of
other European cities.
In comparison to other European centres, rental levels have remained
relatively moderate in Finnish cities. Despite the tightening competition from
other locations, the Helsinki CBD has retained its attractiveness as the most
preferred location in the metropolitan area, which can be seen in the
relatively strong development of rental levels. There are strong expectations
that prime rents especially will continue to rise in the near future.
Building costs
Building costs have increased from July 2007 to July 2008 4,3%. Building
and labour costs increased 4,5%, prices of building materials 3,7% and
other costs 5,8%.
From June to July 2008 the building cost index rose 0,2%. Material
investments increased 0,3% and other investments 0,1%. Prices of
contribution stayed the same.
Building specifications in Finland
In Finland there are strict specifications concerning construction.
The National Building Code of Finland
The National Building Code contains technical regulations and instructions,
which are given by decree. The regulations are binding, and concern the
construction of new buildings. The regulations are applicable to renovation
and alteration works only insofar as the type and extent of the measure and
6
a possible change in use of the building require. The instructions are not
binding but present acceptable solutions.
Following sections are listed in the Finnish building specifications:
General section
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
A1 Supervision of construction work
A2 Building designers and plans (unofficial translation)
A4 Maintenance manual for the care and use of buildings
A5 Plan notations
B The strength of structures
B1 Structural safety and loads
B2 Loadbearing structures
B3 Foundations (unofficial translation)
B4 Concrete structures
B5 Structures of lightweight concrete blocks
B6 Light gauge steel structures
B7 Steel structures
B8 Brick structures
B9 Structures of concrete blocks
B10 Timber structures
C Insulation
C1 Sound insulation and noise abatement in building
C2 Moisture
C3Thermal insulation in a building (unofficial translation)
C4 Thermal insulation (unofficial translation)
D Hepac and energy management
D1 Water supply and drainage installations for buildings
D2 Indoor climate and ventilation of buildings (unofficial translation)
D3 Energy management in buildings
D4 HEPAC drawings
D5 Calculation of power and energy needs for heating of buildings
D7 Efficiency requirements for boilers
E Stuctural fire safety
E1 Stuctural fire safety in buildings
E2 Fire safety of production and warehouse buildings
E3 Small chimneys
E4 Fire safety of garages
E7 Fire safety of ventilation installations
E8 Masonry fireplaces
E9 Fire safety of boiler rooms and fuel stores
F General building planning
F1 Barrier-free building
F2 Safety in use buildings
G Housing planning and building
G1 Housing design
G2 Subsidized housing
Source: Ministry of the Environment
7
Area
Helsinki Metropolitan Area
Helsinki
Metropolitan
Area,
and
Helsinki Region all refer to regions of
different size surrounding Helsinki,
the capital of Finland. It is located in
the south of Finland, on the coast of
the Gulf of Finland, which is part of
the Baltic Sea. The area has a
population
of
one
million
when
Helsinki, Vantaa, Espoo and Kauniainen are included. The Helsinki region is the
largest urbanised area in the country, and is by far the most important economic,
cultural, as well as scientific region of Finland. Eight out of Finland's 20
universities and most of the headquarters of notable companies and
governmental institutions are located in Greater Helsinki, as is Finland's main
aviation hub, Helsinki-Vantaa airport, which is located in Vantaa.
Havukoski
Industrial area
Halmekuja 2
8
9
New Greenfield Harbour in Vuosaari
The port of Helsinki is making
modern maritime history with
the construction of a new
commercial
Greenfield
eastern
harbour
location
Helsinki
on
in
suburb
a
the
of
Vuosaari. Such projects are a
rarity on today`s industrialized
world, where
usually
harbours
results
of
are
long
evolution over decades or centuries. As a result, one of the strengths of the
Vuosaari harbour is a design that meets the needs of modern users without
compromises. The new harbour will further strengthen Helsinki`s position as the
Number One port for Finnish foreign trade. The harbour’s importance for Helsinki
is even greater than that: vast downtown land areas, previously occupied by the
Port of Helsinki, will be freed for totally new uses, enabling the biggest
construction boom in Helsinki`s history and dramatic transformation of the city.
The Vuosaari harbour construction started in 2003. The project has involved
construction of a large road and rail network including a 1.5-kilometre-long road
tunnel, which was opened for traffic in October 2007. All port operations from
the city centre will move to Vuosaari by November 2008, when the new harbour
officially opens.
10
Project Area - Vantaa
Vantaa is a city and municipality in Finland. Helsinki, Vantaa, Espoo, and
Kauniainen make up the Helsinki Metropolitan Area. Vantaa encompasses 243
km², of which 1.90 km² is water. Population density is 790.1/km². It borders
Helsinki, the Finnish capital, which is to the south and southwest. Other
neighbouring municipalities are Espoo to the west, Nurmijärvi, Kerava and
Tuusula to the north and Sipoo.
With its population representing a good 120 nationalities and speaking more
than 80 languages, Vantaa is truly an international and multicultural city. Widely
known for its International Airport, Vantaa is experiencing vigorous business
development and office premises construction. Vantaa has a strong position as
the hub of Finland’s logistics. This makes the city a very attractive location and
growth environment for companies operating in the Finnish or international
markets. Vantaa is actively involved in a number of international networks of
cities and development projects, because Vantaa has its sights set on the future.
Vantaa aims to become increasingly international in order to provide its people
and businesses with a better environment in which to live and operate.
Participation in international forums helps the city to develop new services for its
residents and discover ways to improve existing operations.
Vantaa Aviopolis Airport Area
Aviapolis is the logistic hub of the capital region in Finland. The quickly
developing area is currently the most attractive for companies, and many
companies that rely on international operations are taking up offices there. The
Helsinki-Vantaa international Airport is located in the Aviapolis area with the
EU`s fastest connections to all parts of Europe. The airport is already prepared
for a considerable rise in passenger volumes. Aviapolis also contains several
11
business parks, a technology centre, the Civil Aviation Administration Head Office
and the Central Uusimaa Rescue Department. Aviapolis is the hub of major
arteries. The E18 connects the area to St.Petersburg in Russia and to Turku on
the west coast of Finland, and the other arteries to the major cities in southern
Finland.
Havukoski
The property that is for sale, is situated in Vantaa, in the district of Havukoski.
The precise location is in the industrial area of Havukoski. The location is ideal
because of the exellent traffic communications. Ring Road III is 4 km away from
the industrial area. Lahti highway in the east and Tuusula highway in the west
are 2-3 km away. The traffic connections to north are also very good. New
Greenfield Harbour in Vuosaari is only 15 minutes - and Helsinki centre 20
minutes drive away.
Koivukylä railway station is 10 minutes walk away from Havukoski industrial area
and many busses drive through the area. Helsinki-Vantaa airport is also very
close. Fast developing district of Tikkurila, with its many-sided services, is only 3
km away from Havukoski area.
Halmekuja 2, 01360 Vantaa
12
Project Details Havukoski
Area covered by a detailed plan
13
Property identifier:
92-74-502-1
Purpose of use:
Area of industrial buildings and
warehouses
Total area:
98.668 sq m
Building right:
59.200 sq m
Unused building right:
49.019 sq m
Preliminary property utilization plan
14
Existing Building on the site
Construction year:
1983
Area:
10.182 sq m
Capacity:
79.340 sq m
Floors:
1st floor production units
2-3 floors office units
Heating:
District heating
Repairs:
In 2006, several significant
functional changes, repairs and
engineering has been renewed
Rent on land:
66.226€ p.a.
Tenants:
All the premises are rented
(16 tenants)
The biggest tenants:
•
Peterson Packing Oy, 4700 sqm
•
Perävaunu Vuola Ky, 860 sqm
•
Vantaan Bodyclub, 800 sqm
15
Tenants
16
1st Floor
17
2nd Floor
18
Preliminary construction plan
1st and 2nd floor
19
Facades
20
Real property register
21
22
Abstract of the register of mortgages
23
24
25
26
Certificate of registration of title
27
Investment Calculation
Price
a) existing building
7,850,000
b) site
6,000,000
Total price
13,850,000
Yield
a) Existing building
9,6%
b) Site
4,8%
After building volume has been developed
Purchase price
13,850,000
Development costs
52,000,000 *
Total investment
65,850,000
Net income from existing building
965,000 **
Net income from develop.
5,292,000
Total income
6,202,000
Yield
9,4%
* Building time 3 years; development costs calculated from similar project
** Based on annual 3% increase of the rent
● Building costs include in development costs
28
Contact Persons:
Managing Director Jani Haarala
GSM +358 50 1419
Sales Director AP Vartiainen
GSM +358 50 440 6462
Office:
Conorin Ltd LKV
Itälahdenkatu 2
00210 Helsinki
T. +358 9 730 835
F. +358 9 730 830
29