The M&G European Property Fund, which recently expanded into residential markets across continental Europe, has bought a €148m portfolio in Finland.
The €4.1bn European property fund said it has acquired the 10 assets from a ÅB Kodit, a joint venture between Ålandsbanken Housing Fund and YIT, and has bought a single asset from the Ålandsbanken Housing Fund in a separate deal.
The portfolio of 630 apartments will be built and completed on a phased basis with five assets to be ready for occupation by the end of this year with the remainder in 2021, the fund said.
Majority of the assets are located in the Helsinki region with the remaining three assets located in Tampere, Turku and Hämeenlinna.
M&G European Property Fund manager Simon Ellis said the latest acquisition is a key milestone in the fund’s recent expansion into residential markets across continental Europe, and follows recent transactions in the Netherlands, France and Italy, providing strong diversification and rental growth potential for its investors.
“The greater Helsinki area is a very dynamic region with significant continuing urbanisation, creating a need for around 50% of all future new housing stock required in Finland.
“This portfolio represents a well-diversified group of new apartment blocks with a range of apartment sizes and local amenities targeting the broad, mid-range range rental market, often in rapidly growing commuter locations, benefiting also from greater flexible working practices in the Nordics.”
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