Real Estate Investment Management

Active funds

Premico is the pioneer of property investment funds in Finland. In 2009, together with our partner we launched the first Finnish residential property investment fund aimed at the larger market. For the first time, investors in the fund could take advantage of benefits of scale – which were previously only available to large institutional investors. To date, we’ve been involved in nine different housing and property investment fund projects.

Currently Premico has three funds, of which two are in the holding period, and one is in the investment- and fundraising phase.

Market knowledge combined with our strong local presence help us identify the right properties in which to invest – and to move fast. We build and develop our properties ourselves, so that the end result is a solid investment with stable returns.

We are developing entirely new revenue models or refining our partners’ existing ideas. We operate in projects either as experts, eligible profit-sharing partners, or co-investors.

Active funds

PREMICO RESIDENTIAL FUND III

Premico Residential Fund III is Premico’s third real estate fund specializing in rental housing. The fund’s goal is to construct highly energy-efficient residential apartment buildings. All properties will be carbon-neutral upon completion, and the fund aims to reduce their carbon footprint during the construction phase. The energy efficiency class for all properties will be the highest possible (A-level), and they will seek either BREEAM or LEED certification. Additionally, the properties will be fully compliant with the EU Taxonomy criteria.
PREMICO RESIDENTIAL FUND II

Premico Residential Fund II was established in 2019. The fund’s goal is to construct affordable rental apartments for its ownership. The investment period of the fund has concluded. The fund will be developing a total of nearly 500 affordable rental apartments in the Helsinki metropolitan area. The total value of the investments is over 100 million euros.

The fund’s investors include trade unions, university funds, and private foundations, among others.
PREMICO RESIDENTIAL FUND I

Premico Residential Fund I has constructed nearly 1000 new affordable rental apartments within its ownership between 2017 and 2020. The rents for these apartments are regulated, and there are income limits for tenants. The properties are mainly located in the Helsinki metropolitan area.

The fund has an investment capacity of approximately €200 million.

The fund’s investors include pension companies, trade unions, university foundations, and private foundations.

This Residential Real Estate Fund is the first of its kind in Finland, investing in affordable rental housing production regulated by the Housing Finance and Development Centre of Finland (ARA) with short-term interest rate subsidies.

Exited funds

TAALERI RESIDENTIAL FUND I (Joint Venture, 2009)

Target Yield IRR 11%
Actual Yield IRR 13%

Exit in December 2014: Buyer LähiTapiola

Constructed 311 rental apartments in the Greater Helsinki Area (PKS): 6 properties, totaling 18,300 square meters.

Premico’s role: Creating investment strategy, property acquisition, financial negotiations, construction management, tenant management, apartment leasing and property portfolio management.

Taaleri’s role: Fund management through its subsidiary, Taalerin Pääomarahastot Oy, capital raising, and acting as the general partner of the fund.
TAALERI RESIDENTIAL FUND II & IV (Joint Venture, 2010)

Target Yield IRR 8,0 %
Actual Yield IRR non-public

Exit 2011-2022: Buyer non-public

Constructed 91 rental apartments in the Satakunta region.

Premico’s role: Creating investment strategy, property acquisition, financial negotiations, construction management, tenant management, apartment leasing and property portfolio management.

Taaleri’s role: Fund management through its subsidiary, Taalerin Pääomarahastot Oy, capital raising, and acting as the general partner of the fund.
TAALERI RESIDENTIAL FUND III (Joint Venture, 2010)

Target Yield IRR 9%
Actual Yield IRR 11%

Exit in December 2014: Purchaser LähiTapiola

Constructed 198 rental apartments in the Greater Helsinki Area and 1 property in Lahti, totaling 11,140 square meters.

Premico’s role: Creating investment strategy, property acquisition, financial negotiations, construction management, tenant management, apartment leasing and property portfolio management.

Taaleri’s role: Fund management through its subsidiary, Taalerin Pääomarahastot Oy, capital raising, and acting as the general partner of the fund.
TAALERI RESIDENTIAL FUND V KY (Joint Venture, 2011)

Target Yield IRR 11%
Actual Yield IRR 28%

Exit 2013-2014: Sale primarily to consumers

Purchased and renovated a total of 119 rental apartments in Punavuori and Kallio, totaling 6,400 square meters.

Premico’s role: Creating an investment strategy, property acquisition (seller being a pension insurance company), commercial negotiations, financial negotiations, renovation planning and execution, organizing the sale of the apartments and property portfolio management.

Taaleri’s role: Fund management through its subsidiary, Taalerin Pääomarahastot Oy, capital raising, and acting as the general partner of the fund.
TAALERI RESIDENTIAL FUND VI (Joint Venture, 2013)

Target Yield IRR 8 %
Actual Yield IRR 10,8 %

Exit 2013-2021: Buyer PATRIZIA AG

Constructed 461 rental apartments in the Greater Helsinki Area.

Premico’s role: Creating investment strategy, property acquisition, financial negotiations, construction management, tenant management, apartment leasing and property portfolio management.

Taaleri’s role: Fund management through its subsidiary, Taalerin Pääomarahastot Oy, capital raising, and acting as the general partner of the fund.
Morgan Stanley (MSREI) managed Global 9 Real Estate Fund (Joint Venture, 2018)

Target Yield IRR 18 %
Actual Yield IRR 37 %

Exit 2022: Buyers Orange Capital Partners (OCP) and GIC.

Purchased and renovated 1,594 rental apartments in 17 different locations and 306 apartments in the capital region, totaling 1,900 apartments.

Premico’s role: creating an investment strategy, property portfolio management, property management (leasing, rental management, property management), and developer consulting, as well as co-investor in the fund.

MSREI’s role: fund management, capital raising, acting as the general partner of the fund, and creating an investment strategy.