Mandatum Life (“Mandatum”) and Kaleva Mutual Insurance Company have sold the limited partnership company SaKa Hallikiinteistöt to Partners Group, a leading global private markets firm, acting on behalf of its clients, in a transaction that closed on 13 July 2022. In connection with the transaction, the assets of the Mandatum AM Real Estate I strategy will be distributed to investors and the strategy will be closed. The strategy has been managed by Mandatum Asset Management.
The Mandatum AM Real Estate I strategy, which launched in 2015, was Mandatum’s first alternative investment product. The strategy invested in high cash flow, diversified real estate properties across Finland. The SaKa portfolio has a leasable area of c. 140,000 sqm.
“Our investment approach creates substantial added value for our investors, and the Real Estate I strategy significantly exceeded its return targets. The strategy offered a considerably better return than the equity market, low risk and steady cash flow, even in a turbulent market environment. As an investment strategy, it has been highly successful, and it reached its natural conclusion with the right buyer,” says Mandatum Asset Management’s CEO Lauri Vaittinen.
Going forward, Mandatum Asset Management will offer its investors the opportunity to invest in Finnish real estate through an open-ended fund, Mandatum AM Finland Properties II*.
“Similar to the Real Estate I strategy, the Mandatum AM Finland Properties II fund is a high cash flow strategy that invests in multi-tenant properties that require active management. In addition to labour intensity, the strategy provides additional returns by investing mainly in growth centres. These properties currently have an unusually high NOI premium compared to the Helsinki metropolitan area, even on an international scale,” says Emilia Riikonen, Mandatum Asset Management’s Head of Real Estate Investments.
The Finland Properties II fund continues its predecessor’s strategy, which seeks to invest in individual properties whose potential is not yet reflected in market prices.
“The properties in the Real Estate I strategy had been acquired in 2008–2012, when other institutional investors were under-invested in so-called light industrial properties,” explains Riikonen.
Growing the cash flow and market value of properties through active real estate management and energy investment projects is an integral part of Mandatum Asset Management’s real estate strategy. The company’s real estate portfolio earned the Green Star designation and Regional Sector Leader recognition for its sustainability work from GRESB last year.
Mandatum Asset Management has more than a billion euros in real estate investments under management: Finnish real estate investments made by its own portfolio management team and investments in diversified European real estate funds.
“We see great potential in the real estate market, and we believe that the changing market conditions will continue to bring us good opportunities in the future,” Riikonen sums up.
*Special common fund Mandatum AM Finland Properties II (AIF)
For more information, please contact:
Mandatum
Lauri Vaittinen, CEO, Mandatum Asset Management, lauri.vaittinen@mandatumam.com, +358 (0) 50 382 1674
Emilia Riikonen, Head of Real Estate Investments, Mandatum Asset Management, emilia.riikonen@mandatumam.com, +358 (0) 50 501 2481
Niina Riihelä, Senior Vice President, Marketing and Communications, niina.riihela@mandatumlife.fi, tel. +358 (0) 40 728 1548
Mandatum Asset Management
Mandatum Asset Management engages in fund business and provides Sampo Group with discretionary and consultative wealth management and asset management services as a new asset management company. Mandatum Asset Management manages roughly EUR 29 billion in assets and employs around 120 investment professionals. Mandatum Asset Management belongs to the Sampo Group and is a sister company of Mandatum Life Insurance Company Limited.
Investment baskets are Mandatum Life Insurance Company's unit-linked investments. They are owned and the insurance is issued by Mandatum Life Insurance Company Limited. Mandatum Asset Management acts as the portfolio manager and insurance intermediary for Mandatum Life Insurance Company Limited.
Partners Group
Partners Group is a leading global private markets firm. Since 1996, the firm has invested over USD 170 billion in private equity, private real estate, private debt, and private infrastructure on behalf of its clients globally. Partners Group seeks to generate strong returns through capitalizing on thematic growth trends and transforming attractive businesses and assets into market leaders. The firm is a committed, responsible investor and aims to create sustainable returns with lasting, positive impact for all its stakeholders. With USD 127 billion in assets under management as of 31 December 2021, Partners Group provides an innovative range of bespoke client solutions to institutional investors, sovereign wealth funds, family offices and private individuals globally. The firm employs more than 1,500 diverse professionals across 20 offices worldwide and has regional headquarters in Baar-Zug, Switzerland; Denver, USA; and Singapore. It has been listed on the SIX Swiss Exchange since 2006 (symbol: PGHN). For more information, please visit www.partnersgroup.com or follow us on LinkedIn or Twitter.