Ilmarinen and New York Life Insurance Company have agreed on a strategic partnership in US real estate investments. The newly formed joint venture will become a long-term investor in US commercial property.
The first investments include six office properties in Boston, Washington D.C., Charlotte, San Francisco, Los Angeles and Orange County. The combined value of the portfolio is around €528.2m ($620m).
“The purchased properties represent a geographically diversified portfolio in growing metropolitan areas on both the East and West Coast of the United States. Our investments will focus on office properties that are technically sound and functionally modern with good occupancy rates,” says Mikko Antila, Ilmarinen’s Portfolio Manager in charge of international real estate investments.
Ilmarinen’s share of the joint venture is 49% and New York Life’s is 51%. New York Life Real Estate Investors, a division of NYL Investors LLC, is responsible for the management of the joint venture.
“The strategic partnership with a traditional and respected institutional investor offers us a strong foundation to expand our investments in US real estate markets. The partnership offers us deep insight into local commercial property markets,” says Antila.
In recent years, Ilmarinen has invested in the US housing market and in an office property in the greater Washington D.C. area. In addition to Finland, the company has European direct real estate investments in Germany, Belgium and the Netherlands.
