Avara Residential Fund II is increasing its portfolio with 200 new rental apartments in Helsinki and Tampere.
In February, Avara Residential Fund II bought a residential portfolio of almost 400 apartments from S-Bank’s funds. The 200 apartments now being completed are part of 600 apartments under construction or also in project development.
Tuomas Rantsi, Chief Operating and Development Officer of Avara, says, “The new apartments are located in growth centres in areas that are being constructed rapidly. In all the locations, the use of the area has changed. In Northern Pasila, a former logistics centre is turning into a village-like residential area. In Koskela, the historical hospital area will blend into the small town-like Käpylä. Tampere is expanding into a former industrial area where one of our fund’s new buildings is located.”
This month, a new building with 63 apartments was completed in the old match factory area in Santalahti, Tampere, next to Pispala and the disused lakeside road. In Helsinki, a new building with 60 apartments was completed in Postipuisto, Northern Pasila this month. Also, a building with 77 apartments will be completed in Koskela in early June.
Increasing demand for apartments
Arttu Ekqvist, CEO of Avara Rahastot Ltd, says, “Urbanisation is increasing the demand for apartments in the Helsinki metropolitan area and other important growth centres. Regional projects focused on complementary construction offer us an opportunity to develop exactly the kind of buildings that satisfy our needs.”
Avara Residential Fund II is a closed-end private equity fund aimed at professional investors. The fund invests in market-based and especially rental housing in Finnish growth centres. Its strategy is to provide a stable cash flow and an excellent return on investment through Avara’s own project development, developing existing assets and also through projects executed by construction companies.
Avara Residential Fund II, aims to manage more than 2,000 apartments through portfolio acquisitions and its own project development. It is still open for investment. The fund seeks a capital raise of 200 million euros for a portfolio of half a billion euros from professional investors in Finland as well as abroad.
February’s residential portfolio of almost 400 apartments consists of 17 assets in Helsinki and other large cities in Southern Finland. It has a leasable area of around 20,000 square metres.
The sellers were FIM Asuntorahasto I Ky and also FIM Asuntotuotto Erikoissijoitusrahasto. They are funds controlled by S-Bank’s Wealth Management companies.
JLL acted as S-Bank’s funds’ sole commercial advisor in the transaction and Borenius as the seller’s legal advisor.
