“We aim to work with the existing stock and build the city on the city”

At the end of 2018, Edmond de Rothschild Real Estate Investment Management acquired an empty building in the center of Helsinki, near the port, with the goal of transforming it into a residential property. Historically, at the beginning of the 20th century, it had been an industrial building where ropes were made. It was later converted into office space at the end of the 20th century. The initial acquisition cost of approximately €13 million was supplemented by €40 million in renovation works. This extensive renovation program enabled the creation of several residential spaces spanning around 8,200 square meters: a serviced residence, furnished apartments, traditional apartments, and a 2,000 square meter commercial gallery.

Carrying out transformation projects adapted to new uses “Several challenges were at stake. Most large European cities suffer from a housing shortage, but in city centers, it is often difficult to carry out transformation projects adapted to new uses and successfully create new housing that meets sustainability and comfort standards. Moreover, we needed to properly assess the technical feasibility, in terms of renovation costs, as well as the administrative aspects, such as compliance with regulations and obtaining building permits. The entire project had to align with our financial equation and justify the risks taken,” explains Pierre Jacquot, Co-CEO of Edmond de Rothschild Real Estate Investment Management.

The outcome of this project is very positive, as Pierre Jacquot proudly states: “We achieved our financial goals by purchasing the initial building at a competitive price, obtaining building permits in dialogue with the authorities and within the allotted time, and, most importantly, designing a product that meets demand, particularly residential demand, in the city center.” However, he notes that aligning all these factors of success can be challenging.

Placing the user at the heart of our concerns This urban transformation project is part of a broader real estate investment strategy for Edmond de Rothschild Real Estate Investment Management. “We want to work with the existing stock and build the city on itself.” This approach allows us to position ourselves in prime locations while also optimizing residual carbon emissions. At the same time, we aim to put the user at the center of our concerns, as it is the end user who justifies the building’s design. Finally, we need to gain the commitment of all our stakeholders: our employees, but also the engineers, architects, and contractors who work with us. And more broadly, since we are operating in an urban environment, we must bring together the authorities, citizens, and neighbors to successfully complete the project,” concludes Pierre Jacquot.

In partnership with Edmond de Rothschild.