Mandatum has partnered with funds advised by Morgan Stanley Real Estate Investing to launch a new residential investment venture in Finland. The collaboration starts with the acquisition of seven properties containing roughly 360 units. These assets are situated in high-growth locations across Helsinki, Espoo and Vantaa. The joint venture intends to continue its expansion through further purchases in the Helsinki Metropolitan Area.

As part of the agreement, Mandatum sold four residential buildings from its own holdings to create the seed portfolio. The total value of the initial seven assets is more than EUR 70 million. The properties sold by Mandatum account for EUR 26 million of that total. This disposal will lead to a negative impact of approximately EUR 4.5 million on the company’s results for the fourth quarter. However, the transaction aligns with the firm’s goal to lower its balance sheet risk. Mandatum’s real estate investment exposure will drop from three per cent to two per cent following the deal.

Mandatum will keep a minority interest in the business and will lead the asset management duties. Its specialist real estate team will be responsible for carrying out the investment strategy for the partnership. This move follows the company’s commitment to releasing capital and reducing requirements through systematic risk reduction.

Emilia Riikonen, Head of Real Estate Investments at Mandatum, said: “This transaction is an indication of the revitalisation underway in the Finnish real estate market. We are delighted to launch a partnership with Morgan Stanley Real Estate Investing and introduce an investment strategy aimed at driving strong growth in residential properties. This collaboration further expands our high-profile international partnerships.”

Arjun Bathla, Executive Director of Morgan Stanley Real Estate Investing, said: “We are excited to begin this new venture with a strong partner like Mandatum, which brings years of expertise and an exceptional track record of creating value in real estate. With strong underlying fundamentals in the Finnish residential market, we believe it is well-positioned for growth and new investments.”