Nordic fund manager Brunswick Real Estate has formed a new business to invest in commercial real estate in growing Finnish cities, kicking off with the purchase of a large office in Tampere.
The new firm, called Kielo, has completed the acquisition of the 40,000sqm property from seller Aberdeen Standard Investments. The price of the deal was not revealed.
Patrik Andersson, partner at Brunswick Real Estate, told IPE: “The initial target for Kielo is to invest €1bn.”
Asked about the timing of the new venture, Andersson said: “This is an opportune time in the business cycle for a well capitalised and experienced team to assemble and actively manage a real estate portfolio in Finland.”
Brunswick Real Estate, which focuses on real estate investment management and credit financing, has been present in Finland since 2006.
“Investment yields in Finland are significantly higher than for similar properties in Sweden, creating an interesting risk-adjusted return profile,” Andersson said. “And, in addition, supply of high quality assets coming to the market is increasing too.”
He added: “Finnish institutions have large real estate holdings in their home country, and many of them having now decided to diversify outside Finland.”