KKR, a major global investment business, announced today that its European real estate platform would buy a high-quality portfolio of thirty residential buildings in Finland (the “Portfolio”) from Kruunuasunnot. Two-thirds of the Portfolio’s 1,200 residential units are in Helsinki, Turku, and Tampere, Finland’s three major cities.
KKR’s European Core Plus Real Estate strategy invests on high-quality, significantly stabilized assets with medium-term value growth potential. This is its first Nordic deal. Due to population growth and urbanization, KKR’s European real estate strategy prioritizes residential.
KKR Managing Director and Head of Core Plus Real Estate in Europe Ian Williamson stated, “We’re delighted to enter the Finnish residential real estate market with this acquisition. Our first home investment in our recently established European Core Plus strategy builds on our European residential track record.
First Nordic investment under KKR’s European Real Estate Core Plus strategy.
A healthy economy and high urban rental housing demand support the Finnish residential market. The entry foundation and company plan fit our strategy.”
“This transaction marks an important step in the growth of our Nordics real estate platform as we continue to accelerate our regional investment strategy,” said KKR Director and Head of Nordics Real Estate Alexander Thams. We are thrilled to purchase a portfolio of high-quality assets with considerable potential that suit local tenant demands and the expanding demand for rental housing.”
Avant Capital Partners, a Finnish boutique real estate investor and asset manager, will manage the portfolio with local market experience.
“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,” Avant Capital Partners Partner and co-founder Jussi Thusberg said of the acquisition. Urbanization has increased the ratio of rental housing compared to owner-occupier, a trend we expect to continue.
KKR has spent over €6bn in equity in the Nordic area since 2007 and opened a new office in Stockholm, Sweden in June 2021 to boost its presence and expansion goals. Söderberg & Partners, Sector Alarm, Wolt, Nordic Bioscience, Caruna, Avida, and a Danish residential real estate joint venture are recent investments.
Krogerus advises KKR legally.
About KKR
KKR manages alternative assets, capital markets, and insurance. KKR uses a deliberate and disciplined investing approach, hires top talent, and supports portfolio company and community growth to achieve excellent investment returns. KKR sponsors hedge fund and private equity firms. Global Atlantic Financial Group manages KKR’s life, retirement, and reinsurance divisions. KKR investments may include sponsored funds and insurance subsidiaries. KKR & Co. Inc. (NYSE:KKR) may be found at www.kkr.com and @KKR_Co.
Avant Partners
Avant Capital Partners and its partners invest in Finnish real estate. Since its 2016 founding, the Helsinki-based firm has invested over EUR 1.3Bn with blue-chip partners in investment and asset management, complicated turnaround initiatives, and property development. The firm oversees EUR 1Bn in real estate investments.