Elo has added around €112m of investment in domestic commercial property to its portfolio by acquiring the remaining 45% stake it did not already own from fellow Finnish investors in a real estate investment fund.
The Finnish pension insurance company, which had €22.9bn of assets at the end of September 2017, has bought the shares in Exilion Real Estate 1 from Keva, Finland’s biggest pension fund, and Ilmarinen, one of the two largest pension insurance companies.
Elo already owned 55% of the fund, which holds three commercial properties located in the centre of Helsinki and in the Ruoholahti district of the city.
As a result of the deal, the company said ownership of the fund went entirely to Elo and its investment value rose to around €250m.
Timo Stenius, director in charge of unlisted investments at Elo, said: “Exilion Real Estate 1’s 10-year investment made in 2007 has been a success.
“We are pleased to have the opportunity to increase our holdings in the company and continue to actively develop its outstanding portfolio of real estate with Exilion’s committed and knowledgeable organisation,” he said.
The assets in the fund have total leasable space of around 50,000sqm, consisting of office, hotel and business premises.
The fund is managed by Exilion Management, which specialises in managing property investments owned by Finnish institutions.