Varma sells 22 properties and invests in new Nordic real estate fund

real estate
investment and economy

Varma has signed an agreement on the sale of 22 of its commercial properties to the new real estate fund company Serena Properties AB. The total leasable area of the properties is approximately 152,000 m2, and they are located throughout Finland.

The transaction is part of an overall arrangement where Varma, together with Swedish Ratos AB (publ) and Redito AB, is establishing a real estate fund called Serena Properties AB, which will focus on commercial properties. The new company will acquire 22 properties from Varma for its initial portfolio. The combined value of the properties is roughly EUR 191.5 million.

"This very recent transaction is one way that we are adjusting our real estate investments in line with Varma's strategic targets. The new real estate fund Serena Properties AB will be a focused operator in the commercial real estate market in Finland and Sweden. We are also looking forward to collaborating with the reputable investment company and active owner Ratos," says Varma's Ilkka Tomperi, Investment Director, Real Estate.

As part of the overall arrangement, Varma will become a minority shareholder in the new company, with a 43% holding. The company expects to close the transaction, which is subject to approval by the competition authorities, by the end of January 2016 at the latest.

Varma Mutual Pension Insurance Company is the most solvent earnings-related pension company and largest private investor in Finland. The company is responsible for the statutory earnings-related pension cover of some 860,000 people in the private sector. Premiums written totalled EUR 4.3 billion in 2014 and pension payments stood at EUR 5.0 billion. Varma's investment portfolio amounted to EUR 40.4 billion at the end of September 2015.

For more information, please contact:
Ilkka Tomperi, Investment Director, Real Estate, tel. +358 (0)50 379 1903
Leena Rantasalo, Communications Manager, tel. +358 (0)50 3007980

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