Swedish pension fund AMF has continued to diversify into Finnish real estate by partnering with local insurer Ilmarinen.

Ilmarinen sold to AMF a 50% stake in a SEK4bn (€427m) portfolio of office buildings in Helsinki.

The deal follows soon after the announcement of a €652m joint venture between AMF and Ilmarinen to invest in Finnish retail assets.

AMF, which invests in domestic real estate through its AMF Fastigheter and Rikshem subsidiaries, said it had been evaluating several possibilities for diversification in markets outside Sweden.

Martin Tufvesson, investment manager for real estate, said AMF expected the Helsinki real estate market to benefit from urbanisation and economic growth.

A new company will be set up to own and manage the Helsinki office property and make further investments and developments.

The current 250,000 sqm portfolio consists of 15 properties in central Helsinki, as well as Expoo and Vantaa.