Hyperco purchases a data center property in Helsinki Metropolitan Area – Extension potential for new developments
Hyperco, a Finland-based real estate investment firm focused on acquiring and developing data centers, has acquired a data center property located in the Helsinki Metropolitan Area.
Hyperco has acquired the property from TS-Yhtymä, a Finnish family office, at a total transaction value of over EUR 35 million. The property is located at Myllynkivenkuja 4 in Vantaa. Hyperco’s investors include NREP, one of the largest real estate funds in the Nordics, and Varma, one of Finland’s largest pension funds. A real estate credit fund managed by Morgan Stanley Investment Management, the global asset management division of Morgan Stanley, provides senior financing for the transaction.
The industrial building, located next to a power plant, totals 16 900 square metres of leasable area, and has potential for a 6500 square metre extension.
“We see plenty of potential for development at the property as it features valid industrial zoning, plenty of unused building right, excellent fibre and electricity connections. A 10-20MW data center could be developed to the site, and we are currently planning the extension”, says the CEO of Hyperco, Timo Pohjanpalo.
Strong plans for future growth and sustainable development
Hyperco is heavily focused on developing its properties in a sustainable manner by investing, among other things, in energy efficiency. Waste heat generated at the Myllykivenkuja property could be captured and used to partly replace the fossil fuels that are currently used to heat homes in the Helsinki Metropolitan area.
The acquisition is Hyperco’s first, which was founded little over a year ago and is the first player in its field in Finland. Hyperco’s current pipeline features both standing and development assets across the Nordics. Over the next couple of years, Hyperco will invest in both existing data centers as well as large build-to-suit developments targeted for fast-growing international technology companies. It plans to expand its portfolio to other Nordic countries.
Over the past few years, the Nordic data center market has grown rapidly with several new announcements of large M&A deals and hyperscale developments, such as Microsoft’s cloud region in Finland, and the trend is expected to continue. The growth is explained by access to cheap, reliable, and renewable power as well as abundance of land, which are typically scarce resources in other geographies, such as the Central European markets.
“We see plenty of exciting investment and development opportunities in Finland and the Nordics, particularly now, as power and land availability issues are constraining supply in other markets. Having committed and sophisticated blue-chip investors, now and in the future, support us in executing on these opportunities via hands-on work is important for us”, says Pohjanpalo.
Contact:
Timo Pohjanpalo, CEO, Hyperco, tel. +358 50 300 5466, timo.pohjanpalo@hyperco.com
Photo: Myllynkivenkuja 4, by Anders Portman / Kuvatoimisto Kuvio
Hyperco is a Finland-based investment firm focused on acquiring and developing data centers. Hyperco is aiming for a strong role as a pioneer in the business by building a leading data center portfolio in the Nordics. Hyperco’s business leans on sustainable development: Tomorrow’s society and infrastructure should be developed long-term in a responsible way that equally benefits the environment and society.
