Global property investor AEW has acquired two modern residential apartment blocks in Helsinki from the Bank of Åland residential property fund on behalf of a German pension fund.
Financial details were not disclosed.
Situated in the Helsinki Metropolitan Area (HMA) sub-markets of Jatkasaari (Helsinki downtown) and Matinkyla (Espoo), the two buildings comprise 87 apartments spread across 5,018 m2.
'Finland is one of the most competitive economies in the world, underpinned by the strength of the Helsinki Metropolitan Area, which is one of the main reasons we took the decision to broaden the mandate’s residential exposure and to invest into this dynamic region,' said Lars-Henning Pylla, separate account fund manager at AEW.
'We have focused on smaller-sized, well-equipped units in growing sub-markets that we believe will continue to play a significant role in the region’s long-term economic development, ensuring the future sustainability of the investment,' Pylla added.
Developed in 2017, the apartment block in central Jatkasaari is is 99% let, comprises 53 flats (60 sqm average apartment size), and 30 parking spaces on a freehold plot of 876 m2.
The property in Espoo comprises 34 flats (54 m2 average per unit) and 24 parking spaces on a freehold plot. The asset was developed in 2014 and is currently 100% let.
AEW has been investing in residential real estate in Europe for more than 20 years, according to the firm. It currently manages a dedicated residential fund, RESIDYS, and the asset class represents approximately 8% of AEW’s circa €32 bn European portfolio.
AEW was advised by Castren & Snellman, Vahanen, Yester & Morrow and Cushman & Wakefield. The vendor was advised by Avance and Catella.
