Dutch pension fund asset manager APG Asset Management N.V. (“APG”) has completed an investment in Finnish residential company SATO. Varma Mutual Pension Insurance Company (“Varma”) has sold half of its shares in Finland's second largest rental housing company SATO to APG, which makes APG the second largest shareholder in SATO. Following the transaction, Varma's shareholding in SATO is now around 22.8%. The underlying property value in the deal is approx. € 550 million.
SATO is a fully integrated private residential company which owns and rents about 24,000 residential units in Finland and St. Petersburg. The Company has a portfolio of about €2.4 bln residential units and it aims to grow it further to €4.0 bln by 2020. The company has over the years consistently outperformed its peers through its stock selection and asset management activities.
"In recent years Varma has increased its ownership in SATO, becoming the largest shareholder in the company. Even after the transaction, we remain a large shareholder in the company. This transaction is a demonstration of the success of the of SATO's long-term strategy to become a leading rental housing company in Finland," says Varma's Chief Investment Officer Reima Rytsölä.
"APG is focused on increasing its residential exposure in Europe, particularly in key metropolitan areas that have a growing population. For many years APG has been a significant investor in the residential sector in the Netherlands. More recently we have made two investments in the residential sector in London. SATO is an interesting investment opportunity for us. The expected strong demographic favorable trend in the Helsinki Metropolitan Area underpins the demand for the rental apartments provided by SATO," says Robert-Jan Foortse, Head of European Property Investments at APG.
has served as sole financial adviser to APG in the transaction.