AMF Pensionsförsäkring and Ilmarinen Mutual Pension Insurance have entered a €652m joint venture with Finnish retail chain Kesko.

The Ankkurikadun Kiinteistöt vehicle will own, manage and develop store sites for Kesko. 

Properties owned by Kesko account for €485m of the total. 

The deal is due to complete next month.

Kesko’s equity investment in the joint venture is around €67m.

Two shopping centres and 34 store sites in Finland and Sweden will be added to the company, along with one shopping centre bought from Kruunuvuoren Satama and two store sites sold by Kesko pension fund.

Kesko will lease the store sites sold to the joint venture on long-term leases of 15 years in Finland and 10 years in Sweden.

Retail stores operating at the sites and shopping centres include 15 K-citymarkets, 17 K-supermarkets, nine K-rauta stores and one Rautia K-maatalous store.

Six of the K-rauta store sites are in Sweden.

Varma Mutual Pension Insurance Company and Kesko’s own pension fund have bought retail properties occupied Kesko in the past.