Kruunuasunnot Oy has signed an agreement to divest over 1,200 rental homes in twelve cities around Finland to global investment firm KKR. The transaction is the largest real estate transaction in Finland so far this year. The transaction is KKR’s first property investment in Finland and is expected to be completed during summer.
“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,” says Ian Williamson, Managing Director and Head of Core Plus Real Estate in Europe at KKR.
“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,” says Alexander Thams, Director and Head of Nordics Real Estate for KKR.
“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,” says Jussi Thusberg, Partner and co-founder of Avant Capital Partners.
Catella has acted as the exclusive financial advisor of Kruunuasunnot Oy in the sales process.