HCP Bricks buys Helsinki offices below replacement cost as rivals gate
What's the deal? Helsinki Capital PartnersDealroom has a profile for this one. Try Dealroom → is raising capital for its HCP Bricks Fund to buy discounted commercial properties in Helsinki, betting on Finland's dislocated real estate market. The boutique firm is targeting low acquisition prices, active asset management, and the chance to lift occupancy and valuations.
Why now? Finland's property market is still adjusting to the end of ultra-low interest rates, with higher financing costs and weaker office demand pressuring valuations. Several open-ended real estate funds have gated redemptions, unwilling to sell at current prices and recognize markdowns.
What's the endgame? Building a portfolio from scratch lets HCP Bricks buy at today's prices without protecting legacy valuations. It acquired one building at roughly €350 per square meter, giving it room to cut rents and still target strong returns.
The strategy centers on unlocking occupancy. Its Bolero Business Park stake, about ten minutes by train from central Helsinki, had just over 30% occupancy at purchase; chief executive officer Tommi Kemppainen believes lifting occupancy alone could double the property's value.
The edge: "Only a few of us have raised money and started investing without owning assets bought at the old prices," Kemppainen says. "As a result, we are seeing a lot of deal flow because appetite for commercial real estate is limited at the moment."
The fund is concentrating almost entirely on Helsinki, favoring prime central business district buildings. One target, Uschakoff House, is a roughly 220-year-old property on Pohjoisesplanadi. "In normal economic conditions, there would be no way to buy something like this," Kemppainen says.
What could go wrong? The pitch is not a simple buy-the-dip. Helsinki-area office vacancy was about 18% in 2025 and rose to 18.3% in the first half of 2026, while higher rates have renewed upward pressure on yields — leaving secondary assets harder to reposition and sell.
The signal: Finland's transaction volume has recovered, with KTIDealroom has a profile for this one. Try Dealroom → reporting €4.3 billion in deals through the first three quarters of 2026, but a sharp divide persists as investors chase prime assets and shun offices. Funds with fresh capital and no legacy book are positioned to buy where gated rivals cannot.
Read more: hedgenordic.com
Image credit: Helsinki Capital Partners
