Starwood Buys 73-Asset Rental Portfolio in Finland

The global investment firm has partnered with Avara Oy to acquire the 2,200 units across 16 cities in the Nordic nation.
Northwest Helsinki. Image courtesy of Tommi Selander via Pexels

Global investment firm Starwood Capital Group has closed its first deal in Finland, teaming up with residential investment and asset manager Avara Oy to acquire a rental apartment portfolio totaling roughly 2,200 units across the Nordic nation. The portfolio consists of 73 assets across 16 cities, with half of the portfolio by value located in the Helsinki region.

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Starwood Capital will purchase the portfolio through a controlled affiliate from a consortium of domestic investors. The company will make the investment through Starwood Global Opportunity Fund XI, its 11th opportunistic real estate fund, which closed in April of last year with commitments exceeding $7.5 billion. Backers of the vehicle, the largest in the firm’s history, include an array of U.S. and global pension, sovereign wealth fund and family office investors.

White & Case LLP served as legal advisor to the partners on the Finland acquisition, while Pangea Property Partners and Advium Corporate Finance provided financial advice. Finland’s Avara Oy has an investment and asset management portfolio spanning about 8,000 rental apartments in the country.

Matthew Parrott, vice president at Starwood Capital, said in a statement that the deal would provide exposure to high-quality, well-located residential assets and that the company intended to partner with Avara to scale the opportunity across Finland’s growth centers.

Chalking up portfolio deals

Starwood Capital has been active elsewhere in the Nordic region. In July of last year, the company agreed to sell a portfolio of 51 office, warehouse and logistics properties in Sweden for $412.5 million to listed real estate firm Hemfosa.

In July, the company acquired a five-asset office portfolio in Spain from Oaktree Capital Management and Germany’s Freo for an undisclosed price.