"With interest rates declining, the real estate market is recovering from a two-year period of declining values. In the current market conditions, apartments are available at relatively reasonable prices. Additionally, the current downturn in residential construction could lead to a shortage of rental housing in the coming years, which would support rental income prospects," notes Jaakko Onali, the fund’s portfolio manager.
"The market situation looks highly attractive for our fund, and we believe the timing will benefit our investors. These acquisitions mark the start of the housing fund's investment activities. Going forward, we will focus on acquiring 100% owned properties as well as selected portfolios consisting of individual apartments. The fund aims to achieve an annual return exceeding 10 per cent, generated from rental income and capital appreciation during the investment period," adds Perttu Hokkanen, the fund's co-portfolio manager.
UB Asuntorahasto I Ky is targeted at professional investors, with a minimum investment of EUR 100,000. The planned duration of the fund is 5–8 years. The fund's maximum size is EUR 100 million (NAV). With leverage, the investment capacity rises to EUR 200 million. The fund's investments are managed by United Bankers' experienced real estate fund team, with Perttu Hokkanen, M.Sc. Tech., serving as the lead portfolio manager. Fundraising for the fund is ongoing, with the next subscription date tentatively set for 30 April 2025.