Newsec Property Outlook Autumn 2019: what does the future hold for retail properties?

Press releases   •   Sep 18, 2019 08:23 CEST

In the latest edition of Newsec Property Outlook, Newsec take a look at the state of the retail real estate segment and the results highlight a wide spread within the segment. The best retail continues to flourish and has had one of its strongest years in 2019. Retail of poor quality that has underperformed for a while now is beginning to face even tougher conditions.

Residential and logistics properties in Finland attracting investors - Newsec Finnish Property Outlook Autumn 2019

Press releases   •   Sep 13, 2019 08:00 CEST

Newsec’s latest Finnish Property Outlook predicts that foreign investors will continue to show increased interest in Finland’s property market. Low interest rates and yields coupled with stock market uncertainty is expected to keep property investment demand high. Investors are now interested primarily in residential and logistics properties.

Newsec estimates that the transaction volume in Finland will amount to approximately EUR 7.5 billion this year. There is no lack of investment demand, and foreign investors’ interest in Finland remains strong. The demand for prime properties continues to exceed supply.

In addition to the Helsinki Metropolitan Area, university cities such as Turku, Tampere and Oulu are attractive to foreign investors. In these cities, the location of properties is a crucial factor, and the transaction volume could be even higher if prime properties were put on the market.

International investors interested in residential and logistics properties in Finland

Investors are particularly interested in residential properties as well as logistics properties. This is due to several factors, including the more stable yield development.

“In addition to modern logistics centres in the Helsinki Metropolitan Area, there is also interest in warehouse and light industrial properties in growth centres”, says Mikko Tenhola, Head of Newsec Advisory in Finland.

This is part of a Europe-wide phenomenon, which revolves around the belief that goods distribution will continue to become more efficient as e-commerce grows. Logistics property leases have become shorter in the past year. This reflects users’ unwillingness to commit to a space for a longer period of time, due to either shorter delivery contracts, growth or the changing market environment.

International investors are increasingly interested in Finland’s residential property market and this trend is likely to continue. In addition to competitive yields, foreign investors are attracted by Finnish rental regulation, which is less strict than in other European countries.

“Residential property investments by international investors have increased over the past couple of years. Investors perceive Finland to be a stable economy with a functioning housing market,” says Olli-Pekka Mustonen, Head of Research at Newsec Advisory in Finland.

Residential property tenant demand has remained high in the Helsinki Metropolitan Area, but in many places, the high levels of construction have already stabilised rent growth.

Retail space investment demand declining

Retail space investment demand is uncertain and has decreased considerably, particularly in large retail units. There are considerable variations within the segment, however; shopping centres with grocery stores and the consumer goods trade as a whole are still an attractive investment, whereas investment demand is weaker in shopping centres without grocery stores or other services in towns outside the Helsinki Metropolitan Area.

The competition for tenants is fierce, making it the tenants’ market. The increasing number of retail spaces is impacting the Helsinki Metropolitan Area in particular, where there starts to be oversupply in shopping centres.

You can sign up to receive the newest Newsec Finnish Property Outlook https://www.newsec.com/finnish-property-outlook-autumn-2019

Newsec – The Full Service Property House in Northern Europe – offers real estate owners, investors and tenants a full range of services within Advisory and Property Asset Management. Newsec was founded in 1994 and is today a partner-owned company with some 1 800 co-workers spread across the seven Nordic and Baltic countries. In 2018, Newsec opened a London office to assist international investors interested in the Nordic and Baltic region. Newsec has approx. EUR 45 billion under management and annually signs lease agreements of approx. 1 million square meters, manages transactions of some EUR 3.3 billion and does real estate valuations of underlying property worth almost EUR 165 billion. Thanks to large volumes, local presence combined with in-depth understanding of a range of businesses, Newsec has a unique expertise of the real estate market in northern Europe.

The market report Newsec Property Outlook has been published since 2001. Download the latest issue at www.newsec.com/npo

Newsec’s latest Finnish Property Outlook predicts that foreign investors will continue to show increased interest in Finland’s property market. Low interest rates and yields coupled with stock market uncertainty is expected to keep property investment demand high. Investors are now interested primarily in residential and logistics properties.

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Newsec acquires Tjuvholmen Drift AS

Press releases   •   Jun 26, 2019 10:48 CEST

Newsec acquires 100 percent of the shares in Tjuvholmen Drift AS from Selvaag Eiendom as of 2 July 2019. With this, Newsec further strengthens its operations in Oslo.

“Through the acquisition of Tjuvholmen Drift's portfolio of approximately 300.000 square meters, we get a good foundation for further growth and development of professional management and advisory services. Newsec has 30 years of experience from national and international management assignments, and together with Tjuvholmen Drift we are positioned to handle future technological and market demands from clients. With a unique expertise and ability to deliver, both existing and new clients can be confident that they will be well catered for with us”, says Hilmar Auran, Head of Newsec Property Asset Management in Norway.

“Management and employees in Tjuvholmen Drift will help to increase the level of service and the breadth of deliveries to clients in the Oslo market. The operation of increasingly complex technical facilities in commercial buildings requires great focus and broad expertise. A collaboration with an international player such as Newsec enables Tjuvholmen Drift to manage and develop an even better product for our tenants and customers”, says Director of Commercial Property Management Bjørn Bratt Aanensen in Selvaag Eiendom.

Newsec is a partner-owned company with some 1 800 co-workers in all Nordic and Baltic countries. Newsec has approximately 28.3 million square meters under management and annually signs lease agreements of some 1 million square meters. In Norway, Newsec is the largest player in external property asset management with its 250 employees in 9 offices.

Selvaag Eiendom has owned Tjuvholmen Drift AS since its establishment in 2007. The business is mainly related to the management and operation of common areas and technical facilities at Tjuvholmen in Oslo, in addition to the technical management and operation of commercial properties in Selvaag Eiendom's portfolio. Tjuvholmen Drift has 22 employees and had a turnover of MNOK 24.4 in 2018.

Newsec – The Full Service Property House in Northern Europe – offers real estate owners, investors and tenants a full range of services within Advisory and Property Asset Management. Newsec was founded in 1994 and is today a partner-owned company with some 1 800 co-workers spread across the seven Nordic and Baltic countries. In 2018, Newsec opened a London office to assist international investors interested in the Nordic and Baltic region. Newsec has approx. EUR 45 billion under management and annually signs lease agreements of approx. 1 million square meters, manages transactions of some EUR 3.3 billion and does real estate valuations of underlying property worth almost EUR 165 billion. Thanks to large volumes, local presence combined with in-depth understanding of a range of businesses, Newsec has a unique expertise of the real estate market in northern Europe.

The market report Newsec Property Outlook has been published since 2001. Download the latest issue at www.newsec.com/npo

Newsec acquires 100 percent of the shares in Tjuvholmen Drift AS from Selvaag Eiendom as of 2 July 2019. With this, Newsec further strengthens its operations in Oslo.

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Newsec and Aberdeen Standard Investments enter new property management agreement

Press releases   •   Jun 18, 2019 07:00 CEST

Newsec has signed a comprehensive property management agreement with Aberdeen Standard Investments regarding their total property portfolio in Sweden of approximately 300,000 square meters. The procurement has taken place in tough competition, with great focus on finding a management partner that matches Aberdeen Standard Investments' high demands on quality and local presence for a real estate portfolio in constant change.

The agreement consists of a comprehensive property management solution including financial, commercial and technical management starting October 1, 2019.

“I am very proud of this new assignment and look forward to a developing cooperation with Aberdeen Standard Investments. Our experience of successfully managing real estate in all segments and in several locations has been a strength in this procurement and an acknowledgment that our organization can undertake large assignments with high complexity. ”Says Mattias Johansson, head of Newsec Property Asset Management in Sweden.

Aberdeen Standard Investments’ portfolio consists of properties in the retail, office, logistics and residential segments in Stockholm, Gothenburg, Malmö, Linköping and Örebro.

Newsec – The Full Service Property House in Northern Europe – offers real estate owners, investors and tenants a full range of services within Advisory and Property Asset Management. Newsec was founded in 1994 and is today a partner-owned company with some 1 800 co-workers spread across the seven Nordic and Baltic countries. In 2018, Newsec opened a London office to assist international investors interested in the Nordic and Baltic region. Newsec has approx. EUR 45 billion under management and annually signs lease agreements of approx. 1 million square meters, manages transactions of some EUR 3.3 billion and does real estate valuations of underlying property worth almost EUR 165 billion. Thanks to large volumes, local presence combined with in-depth understanding of a range of businesses, Newsec has a unique expertise of the real estate market in northern Europe.

The market report Newsec Property Outlook has been published since 2001. Download the latest issue at www.newsec.com/npo

Newsec has signed a property management agreement with Aberdeen Standard Investments regarding their total property portfolio in Sweden of approximately 300,000 sqm. The procurement has taken place in competition, with great focus on finding a management partner that matches Aberdeen Standard Investments' high demands on quality and local presence for a real estate portfolio in constant change.

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Newsec and Logicor to enter into a property management service agreement covering more than a million square meters

Press releases   •   Jun 13, 2019 17:06 CEST

The service agreement includes all of Logicor's approximately 80 properties in Finland, covering a total area of more than a million square metres.

"We started negotiations with Logicor in the spring and quickly came to an understanding regarding the service package.I am thrilled that we can offer Logicor high-quality property management services," says Miro Karttunen, Head of Newsec Property Asset Management in Finland.

Newsec provides a similar service package for Logicor's 200,000 m2 portfolio in Sweden.

"We were looking for a comprehensive property management service and have been very satisfied with our cooperation in Sweden. We are looking forward to our cooperation in Finland as well as a potential synergy between our Finnish and Swedish operations," says Jorma Lehtonen, Managing Director of Logicor Nordics.

The new agreement includes technical management, lease management, leasing and project management services. Logicor's property portfolio comprises significant properties all over Finland, which are supported by Newsec's wide network of regional offices.

"Property investments require local presence and expertise. Newsec's wide network of offices plays a crucial role in this," says Lehtonen.

This client relationship will widen Newsec's network even further.

"We will be opening an office in Lahti in the autumn, and decisions regarding other new offices will be made then. I believe we will be opening two or three new regional offices early next year at the latest," says Karttunen.

Newsec – The Full Service Property House in Northern Europe – offers real estate owners, investors and tenants a full range of services within Advisory and Property Asset Management. Newsec was founded in 1994 and is today a partner-owned company with some 1 800 co-workers spread across the seven Nordic and Baltic countries. In 2018, Newsec opened a London office to assist international investors interested in the Nordic and Baltic region. Newsec has approx. EUR 45 billion under management and annually signs lease agreements of approx. 1 million square meters, manages transactions of some EUR 3.3 billion and does real estate valuations of underlying property worth almost EUR 165 billion. Thanks to large volumes, local presence combined with in-depth understanding of a range of businesses, Newsec has a unique expertise of the real estate market in northern Europe.

The market report Newsec Property Outlook has been published since 2001. Download the latest issue at www.newsec.com/npo

Newsec and Logicor, Europe's largest owner and operator of modern logistics and warehouse properties, have entered into a significant property management service agreement.

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Mikko Tenhola appointed Head of Newsec Advisory in Finland

Press releases   •   Mar 18, 2019 12:41 CET

Mikko Tenhola has been appointed as the new Head of Newsec Advisory in Finland from August 1, 2019. He joined Newsec in 2009 and has been deputy Head since 2017. The current Head Juhani Reen will retire at the end of 2019.

Morten Jensen appointed new Head of Newsec Advisory in Denmark

Press releases   •   Mar 06, 2019 10:00 CET

Morten Jensen has been appointed Head of Newsec Advisory in Denmark. He takes office on March 1 and replaces Henrik Lyngskjold who, after 12 successful years, has requested to leave his position.

Newsec Property Outlook Spring 2019: (Co-)working 9 to 5 – is that the new way to make a living?

Press releases   •   Mar 06, 2019 08:16 CET

The total coworking stock in the Nordic and Baltic countries has grown by 36 percent from 2017 to 2018. Following this strong growth, the amount of coworking space will continue to increase by another 24 percent in 2019, up to 680,000 square meters. Coworking as a share of the total office stock will also continue to grow. These figures are available in the latest issue of Newsec Property Outlook.

Newsec advisor in largest office transaction ever in the Baltics

Press releases   •   Feb 15, 2019 08:08 CET

Newsec has acted as advisor in the sale of the S7 office complex in the CBD of Vilnius, Lithuania. The Lithuanian real estate development company M.M.M. projektai sells the office complex to Swedish Eastnine AB for 128 million Euros, making it the largest office transaction ever in the Baltics.

The S7 office complex consists of four buildings. Three of these building, with a total office space of 42.500 square meters gross leasable area, are part of the deal. The transaction of the first building, called DC PIER, takes place this week while the transaction of the second and third building will take place in Q2 and Q3 of 2019 respectively.

This transaction is an important milestone for the Baltic commercial real estate market, primarily due to its large size. It highlights the improved liquidity of the market, supported by a strong demand from both international and local investors, especially for quality products in CBDs. The Baltic region looks very solid and still offers a very attractive price/yield gap compared to investments with similar quality and risk profile“ says Max Barclay, Head of Newsec Advisory.

The S7 office complex has received several international accreditations and awards. The first building is occupied by Danske Bank global services and has been selected the best office building in Central and Eastern Europe. It has also been certified Excellent by BREEAM New Construction, the first such achievement is the Baltics. The second building is occupied by Swedish telecommunication company Telia. The third building, which is still under construction, is fully pre-leased to Danske Bank global services.

The successful development and sale of the S7 complex is an important milestone for M.M.M. projektai as a developer. In the development phase our main focus was on creating the best product possible, including the highest environmental standards and modern engineering solutions. We dedicated a lot of attention and passion to this project and we are proud about the numerous awards it has received. We are also proud of the international tenants who we attracted early on” says Diana Dominiene, Chairman of M.M.M. projektai.

Newsec – The Full Service Property House in Northern Europe – offers real estate owners, investors and tenants a full range of services within Advisory and Property Asset Management. Newsec was founded in 1994 and is today a partner-owned company with some 1 800 co-workers spread across the seven Nordic and Baltic countries. In 2018, Newsec opened a London office to assist international investors interested in the Nordic and Baltic region. Newsec has approx. EUR 45 billion under management and annually signs lease agreements of approx. 1 million square meters, manages transactions of some EUR 3.3 billion and does real estate valuations of underlying property worth almost EUR 165 billion. Thanks to large volumes, local presence combined with in-depth understanding of a range of businesses, Newsec has a unique expertise of the real estate market in northern Europe.

The market report Newsec Property Outlook has been published since 2001. Download the latest issue at www.newsec.com/npo

Newsec has acted as advisor in the sale of the S7 office complex in the CBD of Vilnius, Lithuania. The Lithuanian real estate development company M.M.M. projektai sells the office complex to Swedish Eastnine AB for 128 million Euros, making it the largest office transaction ever in the Baltics.

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Investment demand remaining strong in Finnish property market - Newsec Finnish Property Outlook Spring 2019

Press releases   •   Feb 13, 2019 11:50 CET

The latest issue of the Newsec Finnish Property Outlook shows that property investment prices in Finland have not fluctuated with the stock market but experienced steady growth, and the number of transactions will again be higher than normal this year.

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Newsec – the Full Service Property House in Northern Europe – offers real estate owners, investors and tenants a full range of services within the areas of Property Asset Management and Advisory.