AXA Investment Managers - Real Assets (AXA IMRA) has carried out its third and largest residential investment in Finland, lifting the value of its rental apartment position in the Nordic country to €170 mln.
On Friday, AXA IMRA announced the acquisition of 909 apartments for €130 mln on behalf of two of its sponsored funds that follow a core strategy.
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 (pictured).
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.
Helsinki and Tampere are the largest metropolitan areas in Finland, with strong population growth forecast. All of the portfolio’s buildings are in prominent micro-locations, close to local services and within easy reach of the city centre, and are well-served by a range of transport links.
AXA IMRA entered the Finish residential market in June 2017 with the acquisition of a four-asset residential portfolio for €22 mln, followed in November by the forward-purchase acquisition of two residential properties in Turku for €21 mln.
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 IMRA, 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.'