Varma is a major real estate investor
Our real estate investments include, in addition to direct real estate investments, domestic and international real estate funds. We also consider it important to offer quality rental flats at a reasonable price, especially in growth regions.
As a real estate investor using its own equity, Varma has made major real estate investments and supported the progress of several real estate projects and will actively continue to develop properties under its ownership and convert them, for example, for residential use. Through these actions, we play a key role in supporting Finnish industry and trade and employment.
Varma's direct real estate investments are located in Finland. The assets are diversified according to types of premises and geographical location. In addition to rental flats, the portfolio includes all types of business premises, with the greatest weight on office and retail premises.
The value of international and Finnish real estate fund investments amounted to EUR 815 million on 30 September 2017, and the return between 1 January and 30 September 2017 was 5.9 per cent. The value of international real estate fund investments was EUR 680 million. Most of our real estate investments, i.e. nearly 80 per cent, are focussed on Finland.
Most of our international investments take place through diversified real estate funds, which are complemented, for example, by project-specific funds and co-investments. Our international investments focus on Europe’s largest real estate markets – the UK, France and Germany – and on Sweden.
High occupancy rate in real estate portfolio
After the third quarter, on 30 September 2017, Varma had 223 flats under construction in the capital region. Several building and development projects are also in the pipeline. In terms of investments in business premises, the focus is on developing, maintaining and renovating Varma's directly owned premises.
The occupancy rate for business premises has remained at a good level during this year with a 6.8 per cent vacancy rate on 30 September 2017.
We let diverse business premises that meet the needs of companies of different types and sizes. We own a total of around two million square metres of lettable property, more than half of which is office and commercial premises. Approximately 60 per cent of the real estate is located in the Helsinki Metropolitan Area. Varma owns some 4000 rental flats, 60 per cent of which are in the Helsinki Region.