Nuveen to forward-purchase 141 single-family homes in Finland for €41.85 million

Nuveen has agreed to buy a single-family home portfolio in Finland
Nuveen has agreed to forward-purchase 141 Single Family Homes in Finland

Global investment manager Nuveen has agreed to forward-purchase 141 single-family homes in Finland for €41.85 million.

The detached, semi-detached and terraced houses are in Helsinki, Espoo and Vantaa and include one finished asset and three yet-to-be-built. It is one of Finland’s most significant new development and building contracts this year.

Nuveen is partnering with rental housing developer Toivo Group Oyj, to deliver affordable, A-energy class homes. The Finland single-family homes are set to be completed by 2027.

Single-family Finland rental demand set to grow

Oscar Maltesen, Director, Nuveen Real Estate, says, “We remain convinced that occupier demand for single-family rentals will grow in the largest and most dynamic cities across the Nordics, and look forward to provide these high quality assets to the Helsinki region. The region demonstrates particularly favourable underlying fundamentals and a highly dynamic rental market. We have already invested significantly in the nascent and undersupplied sub-sector in Denmark, and will continue to seek new opportunities in key Nordic cities, with a focus on providing additional supply to the HMA. It has been a great pleasure to work with Toivo on this transaction and we look forward to the continued collaboration to deliver these houses to the rental market.”

Interesting investment class

Markus Myllymäki, CEO of Toivo Group, says, “Single-family homes, that are completed as detached, semi-detached or terraced houses are globally a highly demanded institutional real estate investment class. Toivo has developed and built single-family homes for several years. I am happy, that international institutional investors have found Finnish single-family homes to be an interesting investment class and want to lift Finnish family homes into the institutional investment category. I want to thank Nuveen for this significant contract, and I very much look forward to our collaboration.”

Trevian Asset Management acted as an advisor in the project on behalf of Nuveen’s pan-European diversified Value Add strategy. It has €1.2 billion under management. Avance also advised Nuveen.

Kim Särs, CIO, Trevian, says, “Single-family homes represent a highly appealing yet underserved segment within Finland’s real estate landscape, and the market fundamentals offer robust support for concentrating on this niche. We’re genuinely excited about the opportunities this partnership brings for both our companies.”

Nuveen Real Estate is one of the largest investment managers in the world with $147 billion of assets under management.

Nuveen has invested in single-family homes in other European countries, including Denmark.

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