KKR acquires residential portfolio in Finland

KKR acquires residential portfolio in Finland

Global investment firm KKR’s European real estate platform has agreed to acquire a portfolio of thirty residential properties in Finland from Kruunuasunnot.

The portfolio comprises over 1,200 residential units with two thirds of the portfolio located in the country’s three largest cities of Helsinki, Turku and Tampere.

KKR said this transaction is its first in the Nordic region through its European Core Plus Real Estate strategy, which invests in high-quality, substantially stabilised assets with medium-term value growth potential.

”Residential is a key sub-sector of KKR’s overall European real estate strategy, given its strong structural growth drivers, including population growth and urbanization to support greater demand for rental housing,” the company said.

Commenting on the acquisition, Ian Williamson, Managing Director and Head of Core Plus Real Estate in Europe at KKR, said: “We’re delighted to enter the Finnish residential real estate market with this acquisition. This is our first residential investment in our recently launched European Core Plus strategy and builds on our broader European track record in the residential market. We believe the Finnish residential market has compelling fundamentals, underpinned by a stable economy and strong demand for urban rental housing. The entry basis and business plan align well with our strategy.”

Alexander Thams, Director and Head of Nordics Real Estate for KKR, added: “This transaction marks an important step in the growth of our Nordics real estate platform as we continue to accelerate our regional investment strategy. We are pleased to acquire a portfolio of high-quality assets with great potential that are meeting the needs of local tenants and the growing demand for rental housing.”

Avant Capital Partners, a Finnish boutique real estate investor and asset manager, will manage the portfolio providing local market expertise and asset management capabilities.

Commenting on the acquisition, Jussi Thusberg, Partner and co-founder of Avant Capital Partners, said: “We’re very keen to return to the Finnish residential space and to start working with KKR on this interesting transaction, which forms an excellent platform that we’re intending to grow further. The share of rental housing in relation to owner-occupier has increased in the past years which, supported by urbanization, we see as a trend that will continue to grow going forward as well.”

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