A pension insurance company in Finland is selling nearly 5,000 apartments in one of the largest transactions in the country's housing market history to a major rental housing company.
On Tuesday evening, Finnish pension provider Varma announced one of the largest transactions in the history of Finland's housing market. The company is selling all its directly owned residential properties in Finland, which includes 60 residential properties primarily located in the capital region, totaling 4,761 apartments. The buyer is listed company Kojamo, one of Finland's largest rental housing firms, which already owns approximately 39,000 apartments.
The sale, valued at €900 million, may potentially be the largest in Finnish history. The reasons behind Varma's decision to divest its residential properties, and the implications of acquiring a significant equity stake in Kojamo, raise questions about the future dynamics of the housing market. Varma's investment director, Markus Aho, emphasized that they are not entirely divesting from the housing sector; instead, Kojamo will pay in cash and with shares worth around €300 million. As a result, Varma will become a major shareholder in Kojamo, holding over 16% of its shares.
Moving forward, this transaction symbolizes a strategic shift in Varma's investment approach while simultaneously leading to a notable change in ownership dynamics in the Finnish rental housing market. The implications for renters and the broader market will unfold as Kojamo's approach to property management and development is closely observed following this substantial acquisition.
