An investment fund managed by Morgan Stanley Real Estate Investing (MSREI) and its joint venture partner Premico and RIM announced the sale of a residential portfolio in Finland to Orange Capital Partners (OCP) and GIC. The portfolio, which includes 37 assets and 1,900 apartments across 17 cities, has a total leasable area of approximately 112,800 sqm.
The portfolio includes apartments in a number of Finland’s largest urban areas with around 55% of the income centred around the Helsinki Metropolitan Area. Even as MSREI announces the sale of this portfolio, it continues to invest and manage other residential assets in Finland through its various funds.
Ulf Pleschiutschnig, Co-Head of Europe Investments, MSREI, said: “In line with our focus on environmental and social sustainability we have successfully implemented an ambitious improvement and refurbishment programme. We have significantly increased the energy efficiency of the portfolio, bringing it close to net-zero carbon emissions. We have also created a better living environment for our customers by refurbishing the exterior and interior of their homes. We are now excited to have found in OCP a responsible long-term owner of this portfolio who we trust will continue on our journey to improve the quality of these homes for their residents. At the same time, we are looking forward to continue to invest into the Finnish residential market.”
Joris Voorhoeve, Partner, OCP continued “The underlying portfolio is at the core of our investment strategy – affordable and sustainable housing across Europe. We are long-term investors in the residential space and we intend to build on the capex programme accomplished by MSREI by further modernising the properties and investing in green-energy initiatives.”
Samuel Tuomola, partner and CIO of Premico, co-investor and operating partner in the portfolio commented “Our organization has done an outstanding job managing the portfolio, executing a demanding capex plan and simultaneously improving the overall tenant experience. Since 2017, our partnership with MSREI has been successful and we continue to seek further acquisitions in the Finnish market.”
JLL and Borenius acted as Morgan Stanley Real Estate Investing’s commercial and legal advisor in the transaction. Nordano and Hannes Snellman acted as OCP’s commercial and legal advisors.
Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing investment banking, securities, wealth management and investment management services. With offices in more than 41 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For more information about Morgan Stanley, please visit www.morganstanley.com.
Morgan Stanley Real Estate Investing (MSREI) is the global private real estate investment management business of Morgan Stanley. One of the most active property investors in the world for three decades, MSREI employs a patient, disciplined approach through global value-add / opportunistic and regional core real estate investment strategies. With 17 offices throughout the U.S., Europe and Asia, regional teams of dedicated real estate professionals combine a unique global perspective with local presence and significant transaction execution expertise. As of December 31, 2021, MSREI manages $55 billion of real estate assets worldwide on behalf of its clients.
Premico
Premico is a real estate investment, development and management company specializing in residential assets with an emphasis on decarbonizing the residential sector and constructing affordable multifamily properties ensuring comfortable housing for all.
The company has two business segments: private equity funds investing into residential assets, and a service business comprising asset management services, real estate development, construction project management and property management together with leasing services. Premico is managing ca. 6000 rental apartments in Finnish growth centers through its funds and co-investments. The company currently employees more than 50 real estate specialists.
Renger Investment Management
Renger Investment Management (RIM) is a real estate management, development and investment company that executes real estate investments and strategies for residential and commercial real estate across the Nordic region. The company has extensive experience from the Nordic real estate investment markets and invests together with and advises Nordic and international real estate investors. During the past couple of years, the company has together with its investor partners and clients executed real estate transactions in the Nordic region exceeding 700 MEUR
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Renger Investment Management (RIM) continues its cooperation with Corum Asset Management in its continued expansion into the Nordic real estate markets. Corum has, on behalf of its fund Corum XL, closed its second transaction in the Norwegian market, acquiring a mixed use property in Sandnes outside of Stavanger. In Finland, Corum has, on behalf of its fund Corum Origin acquired a retail asset in the Tampere region.
David Renger, CEO of RIM comments:” RIM´s cooperation with Corum continues where we have successfully closed several transactions with a combined worth of ca 150 MEUR. We currently evaluate several real estate transactions with long lease contracts and stable counterparties across the Nordics.”
“We are extending our presence in the Nordic market, now with our second investment in Norway and continued expansion in Finland. We intend to further expand our investments in the region the coming year.”, says Elbert Frantsen, partner at Corum AM.
DLA legally advised Corum in both transactions.
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PCNRF will only invest in new residential built-to-rent assets. By establishing the fund, Premico aims to provide its expertise in rental apartment investments to a wider range of investors.
”RIM and Premico cooperate on Finnish residential properties since five years and together with our investors we own and manage today ca 1,900 apartments through jointly owned companies. Now we take the next step and raise a new fund together with the highest climate goals and this lay close to our hearts”, says David Renger, CEO of RIM.
The equity target for the PCNRF is EUR 200 million, which is believed to be reached during the fund’s first year of operation. The PCNRF’s overall investment capacity will be around EUR 400 million.
“Demand for rental housing investment vehicles that generate a regular and stable income is high, because interest rates in general are currently low”, says Janne Vaula, Premico Group CEO. “Premico has broad expertise in the Finnish rental apartment market, which we will also make full use of for the new fund. Premico’s goal is to provide unique rental apartment investment products, and the PCNRF enables us to serve a more international and diverse customer base”, Vaula continues. According to Vaula, the fund has received plenty of interest in its pre-marketing stage from various potential institutional and family office investors, particularly from Asia, Central Europe as well as the Nordics. “Our new carbon neutral residential fund enables investors to target their property investments at one of the most appealing housing markets in Europe.”, Vaula summarizes.
“We are very proud of the fact that the PCRNF is the first Finnish residential fund to strongly focus on green values in its property acquisition. More than 60% of a residential building’s carbon footprint results from the energy consumption during occupation, and we aim to eradicate this source of emissions completely. Careful and sustainable choices will also be made relating to the construction materials and their recyclability during the construction phase. We have been developing the concept for the fund for more than a year and have been able to recruit a very talented team of experts to ensure we reach the funds objectives”, says Samuel Tuomola, Premico Group CIO. “We believe that we are now pioneering something that will steer the direction of property investment as an industry towards a more environmentally friendly focus”, Tuomola adds.
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RIM and Premico invest in a joint venture together with a real estate fund advised by MSREI into a portfolio of 306 apartments in 4 residential properties in Helsinki Metropolitan Area. The assets were acquired on August 31st, 2020.
“These two acquisitions provide our investors with exposure to assets in a market with positive demographic and economic trends. The assets complement our existing Finnish residential portfolio and our strategy to add value through asset management initiatives and investment into the assets, including efforts to improve energy efficiency.”, commented Ulf Pleschiutschnig, Managing Director & Co-Head Europe Investments of MSREI.
The joint venture intends to work actively with respect to the portfolio, with renovations and upgrades of the assets. RIM and Premico will jointly run the asset management of the portfolio.
David Renger, CEO of Renger Investment Management: ”RIM and Premico have jointly developed asset strategies for Finnish residential investment opportunities and we have since 2018 invested in residential assets together with MSREI. This add-on acquisition confirms our strategies, strengthens our joint venture and we currently hold a portfolio of 1,900 apartments in Finland.”
“We are extremely pleased to make two additional housing investments together with MSREI and we look forward to actively managing and repositioning the portfolio while introducing a high-quality tenant experience. The partnership with MSREI has been successful and we continue to look for further acquisitions with them in the Finnish market with similar value characteristics.”, says Samuel Tuomola, partner, and CIO of Premico.
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Press release - November 25th, 2019
Renger Investment Management (RIM) continues its cooperation with Corum Asset Management in its continued expansion into the Nordic real estate markets. Corum has, on behalf of its fund Corum XL, closed its first transaction in the Norwegian market, acquiring the recently developed Elverum retail park in Norway.
David Renger, CEO of RIM comments:” RIM´s cooperation with Corum is successfully expanding throughout the Nordics. The cooperation with Corum is in line with RIM´s strategy to engage together with financially strong and well renowned real estate investors in the Nordic region. We appreciate the continued trust from Corum and we are looking forward to continued cooperation on their expansion in the region.”
The property is let on long leases to Rusta, Elkjøp, Power, Byggmaker, Europris and Thansen. RIM has strategically advised and sourced the investment. The property was acquired from a group of private investors.
“We are pleased that we can expand our presence in the Nordic area with our entry into the Norwegian real estate market after having successfully been investing into the Finnish market for a few years. We intend to further expand our investments in the region the coming year.", says Philippe Cervesi, Corum AM, Investment Director.
Bjørn Slaatta at DLA legally advised Corum and Akershus and Wiersholm advised the vendors commercially and legally.
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· RIM expands its cooperation with French investor Corum Asset Management and advises in Corum´s acquisition of 6 Finnish hotels leased to Scandic Hotels and Holiday Club on long leases
· The portfolio comprises ca 43,500 sqm and holds ca 870 rooms. The hotels are located in Turku, Kemi, Rauma, Saariselkä, Kuusamo and Katinkulta
· The purchase price is 72.4 MEUR
Renger Investment Management (RIM) continues its cooperation with Corum Asset Management in its expansion into the Nordic real estate market. Corum AM has, on behalf of its fund Corum Convictions SCPI, acquired a portfolio of 6 hotel assets across Finland. Vendor is CapMan Hotels RE Ky.
David Renger, CEO of RIM comments: ” RIM´s cooperation with Corum is successfully expanding within long let real estate. We have concluded four off market transactions and RIM is positioning itself in the Nordic region within investment management and advisory. During the past two years, we have invested together with and advised Nordic and international investor clients to a value exceeding 300 MEUR.”
The hotel portfolio includes three city center hotels in Turku, Kemi and Rauma operated by Scandic Hotels and three Holiday Club Spa Hotels located in the popular resort and recreational areas of Saariselkä, Kuusamo and Katinkulta.
“We are pleased that we have been able to grow our presence in the Finnish real estate market over the past year. The acquisition of the hotels from Capman improves our position in the market and we enter the hotel segment which we appreciate a lot. RIM´s sourcing capabilities has proved to be a key success factor and we look forward to future cooperation.",
says Philippe Cervesi, Corum AM, Investment Director.
“During the last two years, we have signed new long leases and made extensive renovations together with our tenants to the exited hotel properties, so these hotels are in good position to enable future growth supported by the strong development of the hotel market in Finland. It is our pleasure to welcome Corum to the Finnish hotel market and we want to thank Corum and RIM for the smooth and professional process during the transaction.”, says Markku Jääskeläinen, CapMan Real Estate, Investment Director.
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· A real estate fund advised by Morgan Stanley Real Estate Investing ("MSREI") acquires 1,594 rental apartments from Kojamo plc in a joint venture with RIM and Premico.
· The apartments are located in 15 different growth centres across Finland.
· Premico and RIM will be responsible for the investment management, while Premico Management Oy will be responsible for the property management.
RIM and Premico invest in a joint venture together with a real estate fund advised by MSREI into a portfolio of 40 residential properties in Finland. The portfolio is comprised of 1,594 apartments whereof the majority are located in southern Finland. The portfolio of residential properties is located in growth areas including Vantaa, Porvoo, Tampere, Jyväskylä and Turku, among others. Kojamo plc is selling the portfolio and the takeover will take place by the end of April.
“We are excited to enter the Nordic market through the acquisition of this substantial residential portfolio,” commented Ulf Pleschiutschnig, Managing Director at Morgan Stanley. “We are looking forward to actively working on the assets together with RIM and Premico as our asset development and joint venture partners. MSREI expect further expansion in the region.”
The joint venture intends to work actively with respect to the portfolio, with renovations and upgrades to the assets. RIM and Premico will jointly run the investment management and asset management of the portfolio.
David Renger, CEO of Renger Investment Management: “RIM and Premico have jointly developed investment strategies for the Finnish residential real estate sector. We are delighted that we are executing on our first joint investment in close cooperation with MSREI into a portfolio of assets where we can deliver on an active management strategy.”
“Finland is currently one of the most interesting investment markets in Europe and we are happy that MSREI is entering the Finnish market through their advised funds and intends to continue to grow their presence in our market. The cooperation with MSREI and RIM opens up new possibilities to develop our business and we are naturally excited about that.” says Janne Vaula, CEO of Premico Group Oy.
Advium Corporate Finance acted as the vendor´s transaction advisor and Borenius was the legal advisor for the buyer.
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Renger Investment Management (RIM) is increasing its cooperation with Corum Asset Management and advises in its third purchase in Finland.
Corum AM has, on behalf of its fund Corum Convictions SCPI, acquired the old bus station at Jalkarannantie 1 in central Lahti that is undergoing a retail conversion. The asset is now being fully refurbished and will be completed during the spring of 2018. The main tenant is the Finnish retailer Kesko and is let on long leases.
David Renger, CEO of RIM comments: ”The cooperation with Corum is expanding further within long let real estate across the Nordics. Having transacted over 110 MEUR in four transactions together with investor clients over the past 12 months, RIM is well ahead on building a solid platform for institutional investors wanting to access the Nordic markets.”
The location of this asset is very strong, next to the city centre of Lahti with good car access on the western bypasses of the city. The asset is furthermore strategically located next to the harbor areas, where new residential development is expected during the coming years.
“We are pleased to have done our second transaction with SSR group. This is our third investment into the Nordic region having invested around 30 MEUR the last few months. We appreciate the sourcing capabilities and the network of RIM that has opened up the Nordic market for us during a short period of time. We have invested around 400 MEUR in Europe in 2017 and plan to invest even more in 2018 with high ambitions for the Nordic region", says Philippe Cervesi, Corum AM, Investment Director.
The property is designed in 1939 by Kaarlo Könönen and is a unique building representing the functionalistic era and it is a protected site.
Arto Kukkonen, CEO of SSR Group: “We are confident that the redevelopment of the old bus station in Lahti will be a welcome addition for the citizens of Lahti to the expansion of the western parts of the city centre. We are furthermore pleased to announce our expanded cooperation with RIM and Corum for our second disposal of our recent developments.”
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Renger Investment Management (RIM) is increasing its presence within the Nordic real estate market through its strategic cooperation with Corum Asset Management. During 2017, RIM has developed its relations with the rapidly growing French investor Corum AM and the first transaction is now closed.
Corum AM has, on behalf of its fund Corum Convictions SCPI, closed its first transaction acquiring the recently constructed retail asset at Horninkatu 1 in Pori, Finland for approx. 9 MEUR.
” The acquisition of Horninkatu 1 in Pori is our first investment into the Nordic region and we are very pleased to have done it on an off-market basis from SSR Group. We appreciate the cooperation with RIM and we look forward to further growth in the region. "We will invest around 350 MEUR in Europe in 2017 and plan to invest more in 2018 with high ambitions in the Nordics", says Philippe Cervesi, Corum AM, Investment Director.
David Renger, CEO of RIM further comments: ”The cooperation with Corum complements the investment criteria of RIM´s existing investor clients and opens up for working with long let real estate across the region. The cooperation with Corum is in line with RIM´s strategy to engage together with financially strong and well renowned real estate investors in the Nordic region. RIM looks forward to the continued cooperation with Corum.”
The property is let on long leases to the sporting goods retailer XXL and the consumer electronics retailer Gigantti. RIM has strategically advised and sourced the investment on an off-market basis and the property was acquired from the Finnish construction and real estate development company SSR Group.
Arto Kukkonen, CEO of SSR Group: “We are proud that we have been able to attract high quality tenants such as Gigantti and XXL to our successful retail development scheme in Pori. We are a fairly young company, but with experienced staff and we are pleased that we have been able to attract international capital to our developments, well needed to support the strong topline growth of our company.”
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Renger Investment Management (RIM) has over the past year together with Bouwfonds Investment Management developed plans to acquire carpark assets in the Nordic region. Bouwfonds has now closed its first transaction under this cooperation for Bouwfonds European Real Estate Parking Fund III (BEREPF III), being an open-ended special AIF. RIM has strategically advised and sourced the investment on an off-market basis into Kasarmitori carpark in central Helsinki from OP.
The carpark is an underground garage located under Kasarmitori (Sw. Kaserntorget) one block from Esplanadi in the central business areas of Helsinki. The asset holds ca 400 parking spaces and is let to Q-Park on a long-term lease.
” The acquisition of Kasarmitori carpark is our second investment into the Nordics and we are very pleased to have done it on an off-market basis from OP. We appreciate the knowledge, network and access to the market that we have gained through our cooperation with RIM. We intend to continue our growth in the region over the coming years.”, says Bart Pierik, Managing Director Parking, Bouwfonds Investment Management
RIM and Bouwfonds have signed an exclusive agreement for cooperation on the development of the Nordic strategy for Bouwfond´s further growth and acquisition of carparks. The parties are currently evaluating more business opportunities in all of the Nordic countries.
David Renger, CEO of RIM comments: ” The cooperation agreement and the transaction itself is in line with RIM´s strategy to engage together with financially strong and well renowned real estate investors to develop real estate strategies and acquire real estate in the Nordic region. RIM looks forward to the continued cooperation with Bouwfonds.”
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Renger Investment Management (RIM) has together with Profi Fastigheter evaluated plans to acquire and develop the property Tumba 7:150 located in Tumba south of Stockholm, Sweden. Profi Fastigheter completes the transaction and RIM invests together with Profi.
The lettable area of the property is ca 80,000 sqm and includes all in all ca 23 hectares of land. The largest tenants are Alfa Laval, the municipality of Botkyrka and the Swedish National Heritage Board. The property is located next to Tumba town centre and Tumba commuter train station, which is a strategic hub for public transportation in the southern parts of Greater Stockholm.
Profi and RIM will jointly manage the strategic asset management and the development works on the property, on which the parties see large opportunities for further development together with the municipality of Botkyrka and existing tenants. Profi and RIM aim to initiate a larger urban development project which is in line with the ambitions of the municipality of Botkyrka and current master plan for the area.
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