Premico, a real estate investment and development company specializing in rental apartments, is opening its new real estate capital fund for additional capital. The purpose of Premico Housing Fund II Ky is to construct 1700 new affordable rental apartments, primarily in the Helsinki metropolitan area and other growth centers in Finland by the end of 2023.
The property As Oy Kivistön Zeus (2019) owned by Premico Housing Fund Ky in Vantaa. Image: Premico Homes
Established in 2016, Premico Housing Fund Ky has developed and owns 969 new affordable rental apartments. The fund is closed for further investments. It has achieved its goals remarkably well. The rental occupancy rate for its owned properties was 98.6 percent, with a tenant turnover of 19.1 percent, and an average rent per square meter of 14.61 euros per month (2019).
Premico Housing Fund II Ky was established in December 2019 with the objective of constructing approximately 1700 new affordable rental apartments in Finland’s growth centers by the end of 2023. The aim is to construct these properties mainly using the so-called short-term 10-year interest subsidy loans provided by ARA (the Housing Finance and Development Centre of Finland). The fund raised approximately half of the required capital in the first half of the year, with the goal of securing additional capital by the fall of 2020. Currently, Premico Housing Fund II Ky has 511 affordable rental apartments under construction or in the preliminary agreement phase in the Helsinki metropolitan area.
“We have heavily invested in property acquisitions during the first half of the year and have been successful in doing so. By opening the fund for new capital, we aim to ensure the achievement of our housing production goals over the next three years,” stated Janne Vaula, CEO of Premico.
The rental rates for the fund-owned apartments are, depending on the location, two to five euros per square meter per month cheaper compared to similar privately financed rental apartments.
“The shortage of affordable rental apartments is considered a significant problem, hindering, among other things, labor mobility and thereby slowing down economic development. Our investors in the funds include trade unions, university foundations, and private trusts. We have also personally invested in the fund. All our investors share a desire to take on social responsibility combined with moderate return objectives,” Vaula explained.
For more information:
Janne Vaula
CEO
Premico Group Oy
+358 40 501 6063
janne.vaula@premico.fi
Samuel Tuomola
CIO
Premico Group Oy
+358 50 566 6111
samuel.tuomola@premico.fi