Premico is establishing a new Premico Carbon Neutral Residential Fund (PCNRF). The PCNRF is Finland’s first residential fund focusing on constructing residential buildings that are sustainable with small carbon footprints in addition to being located in prime locations. The fund will invest in A-rated energy class buildings located within the Helsinki region, which aim for carbon neutrality during the occupancy period and a BREEAM Excellent rating. In line with Premico’s existing housing funds, the Premico Residential Funds I and II, the PCNRF will only invest in new residential built-to-rent assets. By establishing the fund, Premico aims to provide its expertise in rental apartment investment to an even wider range of investors.
Premico’s property team has identified many potential investment targets in the housing market, and it is planned that the first investment decisions for the fund will be made in early 2021. The equity target for the PCNRF is €200m, which is believed to be reached during the fund’s first year of operation. The PCNRF’s overall investment capacity will be around €400m.
“Demand for rental housing investment vehicles that generate a regular and stable income is high, because interest rates, in general, are currently low,” said Janne Vaula, Premico Group CEO. “Premico has broad expertise in the Finnish rental apartment market, which we will also make full use of for the new fund. Premico’s goal is to provide unique rental apartment investment products, and the PCNRF enables us to serve a more international and diverse customer base.” According to Vaula, the fund has received plenty of interest in its pre-marketing stage from various potential institutional and family office investors, particularly from Asia, Central Europe as well as the Nordics. “Our new carbon-neutral residential fund enables investors to target their property investments at one of the most appealing housing markets in Europe,” said Vaula.
“We are very proud of the fact that the PCRNF is the first Finnish residential fund to strongly focus on green values in its property acquisition. More than 60% of a residential building’s carbon footprint results from the energy consumption during the occupation, and we aim to eradicate this source of emissions completely. Careful and sustainable choices will also be made relating to the construction materials and their recyclability during the construction phase. We have been developing the concept for the fund for more than a year and have been able to recruit a very talented team of experts to ensure we reach the funds objectives,” said Samuel Tuomola, Premico Group CIO. “We believe that we are now pioneering something that will steer the direction of property investment as an industry towards a more environmentally friendly focus.”