AEW has acquired two Finnish residential apartment blocks for an unnamed German pension fund.

The real estate manager said it bought the two buildings in Jatkasaari and Matinkyla from the Bank of Åland Residential Property Fund for an undisclosed amount.

Developed in 2017, the apartment block in central Jatkasaari with 53 flats, is 99% let. The Matinkyla apartment block comprises 34 flats, which was developed in 2014, is fully let.

Together the two buildings spread across 5,018sqm.

Lars-Henning Pylla, separate account fund manager at AEW, said: “Finland is one of the most competitive economies in the world, underpinned by the strength of the Helsinki Metropolitan Area, which is one of the main reasons we took the decision to broaden the mandate’s residential exposure and to invest into this dynamic region.

“We have focused on smaller-sized, well-equipped units in growing sub-markets that we believe will continue to play a significant role in the region’s long-term economic development, ensuring the future sustainability of the investment.”

AEW currently manages a dedicated residential fund, RESIDYS, and the asset class represents approximately 8% of AEW’s €32bn European portfolio.