A property fund advised by Morgan Stanley Real Estate Investing (MSREI) has made a new acquisition in Finland. The fund has acquired 151 rental residential units and building rights for approx. 130 new residential units within Haukilahti (Espoo) in the Helsinki Metropolitan Area from Varma Mutual Pension Insurance Company (Varma). Varma owns over 4,000 residential units in Finland and has well over 1,000 new units under development over the coming years. MSREI, through the funds that it manages, has previously acquired 1,900 residential units in Finland through multiple acquisitions. Premico will manage the new acquisition.
Commenting on the acquisition, Ulf Pleschiutschnig, Managing Director at Morgan Stanley & Co-Head of European Real Estate Investments, said:
“We believe that the Helsinki area shows long-term potential benefitting from positive demographic and urbanisation trends. We are pleased to have added this asset to our residential portfolio.”
Commenting on the sale, Ilkka Tomperi, Investment Director and Head of Real Estate at Varma, said:
“The sale was part of our normal portfolio management and as consequence of a successful zoning process we were able to add further building rights on this plot of which the new owners can take benefit of.”
Samuel Tuomola, partner, and CIO of Premico, commented:
“We are delighted Premico has been able to advise MSREI in making an additional housing investment in Finland. We look forward to actively managing the existing asset while we construct ca. 130 new high-quality units to complete the portfolio. Since 2017, our partnership with MSREI has been successful and we continue to seek further acquisitions with them in the Finnish market.”
MD & Co-Head Europe Investments
+ 44 7810 630546
Premico Group Oy
+ 358 505 666111
Investment Director, Real Estate
+358 50 379 1903
+358 40 555 8029
Morgan Stanley Real Estate Investing, MSREI
Morgan Stanley Real Estate Investing (MSREI) is the global private real estate investment management arm of Morgan Stanley. One of the most active property investors in the world for over two decades, MSREI employs a patient, disciplined approach through global opportunistic / value-add and regional core real estate investment strategies. With offices throughout the U.S., Europe and Asia, regional teams of dedicated real estate professionals combine a unique global perspective with local presence and significant transaction execution expertise.
VARMA MUTUAL PENSION INSURANCE COMPANY
Varma Mutual Pension Insurance Company is a responsible and solvent investor. The company is responsible for the statutory earnings-related pension cover of some 900,000 people in the private sector. Varma’s premiums written totaled EUR 5.3 billion in 2019 and pension payments stood at EUR 5.9 billion. Varma’s investment portfolio amounted to EUR 46.8 billion at the end of September 2020.
Premico is a Finnish real estate investment and development company specialized in residential assets currently managing over 6000 rental apartments in over 20 different cities. Together with its partners Premico has established eight residential funds with a total investment capacity of 1,3 billion euros. Premico Residential Fund I & II combined own over 1200 units of new rental apartments pursuing to grow the portfolio to approximately 2700 apartments by 2023. Premico is a local partner for Morgan Stanley Real Estate Investing (MSREI) in Finland owning together over 1900 rental apartments.