KKR’s recently launched European core-plus real estate strategy has marked its entry into the Nordics with the acquisition of a residential portfolio in Finland.
The global investment firm’s European Core Plus Real Estate fund has agreed to acquire 30 residential properties from Finnish housebuilder Kruunuasunnot for an undisclosed amount.
KKR said the portfolio comprises over 1,200 residential units with two-thirds of the portfolio located in the country’s three largest cities of Helsinki, Turku and Tampere.
Avant Capital Partners, a Finnish boutique real estate investor and asset manager, will manage the portfolio.
Ian Williamson, managing director and head of core-plus real estate in Europe at KKR, said: “We’re delighted to enter the Finnish residential real estate market with this acquisition. This is our first residential investment in our recently launched European Core Plus strategy and builds on our broader European track record in the residential market.
“We believe the Finnish residential market has compelling fundamentals, underpinned by a stable economy and strong demand for urban rental housing. The entry basis and business plan align well with our strategy.”
Alexander Thams, director and head of Nordics Real Estate for KKR, said: “This transaction marks an important step in the growth of our Nordics real estate platform as we continue to accelerate our regional investment strategy.”
The KKR European Core Plus Real Estate strategy invests in high-quality, substantially stabilised assets with medium-term value growth potential. Earlier this week, the fund bought an 819-bed student housing asset in a forward funding deal with UK developer Watkin Jones.
KKR already has a presence in the Nordic region, having invested over €6bn in equity since 2007, including a residential real estate joint venture in Denmark.
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