AXA IM - Real Assets has completed the acquisition of a residential portfolio in Finland, for c. €130m, on behalf of two of its sponsored funds invested in line with AXA IM - Real Assets’ core strategy.
Totalling 909 modern rental apartments, comprising a mixture of freehold and leasehold properties, the portfolio spans 22 buildings, nearly 90% of which are located in or close to Finland’s capital and second largest cities; six in Helsinki and thirteen in Tampere. The remaining three are located in Jyvaskyla, Finland’s seventh largest city and home to one of the country’s top universities, drawing a young population. Constructed since 2010, the lettable area totals 44,198 m², with individual units averaging 49 m². The portfolio is almost fully occupied.
In June 2017, AXA IM - Real Assets entered the Finish residential market with the acquisition of a four-asset residential portfolio for €22m, followed in November by the acquisition of two residential properties in Turku for c. €21m, by way of a forward-purchase agreement. Both transactions were on behalf of a German special fund focusing on residential investment and are in line with AXA IM - Real Assets’ investment strategy of acquiring modern multi-family residential properties in attractive European markets. Finland presents a particularly compelling investment proposition with regards to this asset class, benefitting from steady rental growth over the past decade coupled with a backdrop of undersupply.
Fredrik Söderlund, Head of Asset Management & Transactions in the Nordic Region, at AXA IM - Real Assets, commented: “We have been steadily growing our Nordic assets under management, capitalising on the region’s robust economic fundamentals with the aim to create value for our clients. The latest investment in a high quality and well-let portfolio offers an attractive income return, in a market where the hunt for yield continues to be prioritised by real estate investors across Europe.With a portfolio spread across a diverse range of traditional and alternative real estate sub-sectors, we’re now pleased to have built up a meaningful holding in the Finnish residential sector comprising 1,143 units so soon after our entry into the market.”
