Catella Residential Investment Management (CRIM) has acquired a portfolio of four residential assets in the Finnish cities of Helsinki, Tampere, Turku, and Vantaa.
CRIM acquired the assets for around €50 mln from Oivat Kaupunkikodit Ky, a fund managed by eQ Asset Management, on behalf of the Catella European Residential III (CER III). Catella Asset Management Oy will manage the portfolio.
The deal includes 243 new apartments, 6 commercial units, and 122 parking spaces. The apartments, completed between 2021 and 2022, are modern and functional, ranging from 25.5 to 84.5 m2 and featuring well-equipped kitchens, bathrooms, and balconies. All the properties are conveniently located near public transportation.
While the buildings currently have an average B energy efficiency rating (meeting EU standards), Catella plans to upgrade them to achieve the top A rating as part of their ESG focus.
Tapio Nurkkala, investment director, Catella Asset Management Oy said: ‘Robust underlying market fundamentals continue to support the future growth of residential investments in Finland over the long-term. The ongoing urbanization trend is particularly visible in the Golden Triangle cities, where the portfolio’s properties are located, and which are also the homes of the country’s four largest universities. Finland’s share of single-person households is the highest in Europe, standing at approximately 47%, compared with an average of around 34% in the EU as a whole, a demographic which closely overlays the composition of the size of the units we have invested in.’
Xavier Jongen, managing director CRIM, added: ‘This latest investment by CER III in Finland represents an excellent opportunity to further diversify the Fund’s portfolio. The overall sustainability profile of CER III will also be boosted as we invest in upgrading the energy efficiency of the underlying assets in the Finnish portfolio.’
Robert Karlsson, managing director, Catella AM, commented: ‘This strategic acquisition of Article 9 compliant residential assets marks a significant milestone in the growth strategy of Catella Asset Management together with CRIM. With this, the parties have facilitated yet another entry of a new fund into the Finnish market.’
Krogerus Attorneys acted as the legal advisor and PricewaterhouseCoopers as the financial advisor for the CER III fund.
The CER III fund was Europe’s first cross-border residential real estate fund to secure the leading SFDR Article 9 ‘dark green’ investment status.
With this transaction, Catella AM together with CRIM manages approximately 1,000 residential units in Finland. This acquisition further strengthens CER III's portfolio diversification, bringing its holdings to over 35 properties across eight European countries.
