VR Pension Fund and Etera Mutual Pension Insurance Company have backed a new fund and sold two properties to seed the vehicle.

The Finnish institutional investors backed eQ Asset Management’s real estate fund, which is investing in the country’s commercial real estate sectors.

The semi open-ended special investment fund recently bought two office properties in the Helsinki metropolitan area for €23m from VR and Etera.

Tero Estovirta, head of real estate investments at eQ, told IP Real Estate the fund was for now aimed at domestic investors but did not rule out the participation of international investors in the future.

The fund, open for new investors quarterly and semi-annually for redemptions, will pay out at least 75% of its annual profits, aiming for a 6% annual distribution. 

“We see great return potential in commercial real estate, despite the current Finnish economic situation,” said Estovirta.

The manager’s first real estate fund, eQ Care, has more than 1,250 unit holders, with €150m of equity and an investment capacity of more than €300m.

The fund owns 53 properties.