FINLAND - Finland's first real estate equity fund, launched as a limited liability company by Helsinki-based Evli Investment Management in April, has closed with e46m in equity.
|nvesting in the Baltic real estate markets on behalf of Finnish and foreign institutional and private banking investors, Evli Property Investments (EPI) Baltic 1 was set up on the back of strong demand from Finnish investors for indirect real estate vehicles.
“The first closing means that the fund can begin its investment activity,” said Petteri Nurminen, managing director of the fund and Evli Property Investments. “Nevertheless new investments may still be received up to e50m. We aim to make the first real estate investments of EPI Baltic 1 during the summer.”
The value of the fund is set to be about e150m, with the real estate portfolio managed by Catella Property.
Previously, Maunu Lehtimaki, managing director of Evli Investment Management, told Global Pensions the Baltics offered the opportunity for better returns than the Finnish real estate market.
“There is demand for this type of investment and the market outlook and net yields are still, by Finnish or Nordic standards, very interesting in the Baltics, so there is definitely clear yield pick up to be had by investing into that market,” he said.
Evli said the fund offered investors an opportunity to invest in a diversified real estate portfolio “without general equity market risk”.
The fund invests its assets directly in the Baltic property markets, and had aimed to collect e30m in equity, with a possibility of up to e50m. But the firm said demand exceeded expectation with more than e46m finalised as underwritings of shares in EPI Baltic 1. Minimum investment in the fund is e50,000 and the operating period is seven years, with the opportunity to extend depending on the markets.
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