Varma, a Finnish pension insurance company, has announced the sale of all its residential properties to Lumo Kodit Oy, a subsidiary of Kojamo, for around 900 million euros. The transaction will be settled in cash through new shares issued by Kojamo. This significant transaction makes Varma a substantial shareholder in Kojamo, an indication of the shifting dynamics in the Finnish housing market as pension funds adapt to new regulations regarding investment risk management.

Markus Aho, Varma's Deputy CEO, highlighted that the upcoming pension reform will strongly influence their investment strategies, compelling pension companies to take on greater risks with pension investments. The reform will impose new requirements on how these funds can be allocated within the Finnish housing market, necessitating a thorough evaluation of their investment portfolios to respond to market conditions effectively. Aho's comments suggest a proactive approach to aligning Varma's investments with these imminent changes.

The deal involves the transfer of 60 residential properties, totaling 4,761 apartments, and is subject to approval from competition authorities. Until the deal is finalized, the services for tenants currently living in Varma's properties will continue as usual. This transaction reflects broader trends in the Finnish real estate market and underscores the evolving role of institutional investors within it, as they seek to optimize returns amidst changing regulatory landscapes.