Mandatum and Morgan Stanley form Finnish real estate JV

Financial services provider Mandatum and funds managed by Morgan Stanley Real Estate Investing (MSREI) have teamed up to invest in residential properties within the Helsinki Metropolitan Area.

Emilia Riikonen

The joint venture kicks off with an initial portfolio of seven residential properties, encompassing approximately 360 units, four of which were previously owned by Mandatum. The joint venture plans to expand its holdings through further acquisitions in the region.
Mandatum will hold a minority stake in this new venture and will act as its asset manager.
Mandatum has sold four residential properties from its Helsinki metropolitan area portfolio to the joint venture's seed portfolio. The total value of the initial portfolio exceeds €70 mln, with Mandatum's divested assets accounting for €26 mln of that sum. 
This transaction further reduces the investment risk on Mandatum's balance sheet, as its real estate investment proportion will decrease from three per cent to two per cent. 
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, added: “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.”