Nordic firm IceCapital has acquired five housing projects in Finland for €37 million.
In a statement, IceCapital said the projects contained 296 apartments in different parts of Finland and that building would begin at once, with projects scheduled to complete by summer 2011. YIT Corporation, a Helsinki-based firm, was the seller.
The projects are being acquired for IceCapital Housing Fund II which invests in rental apartment buildings.
The €400 million vehicle was established in June 2009, with the largest investors being the company pension fund VR Eläkesäätiö, the State Pension Fund, Etera Mutual Pension Insurance Company, Local Insurance Mutual Company, the Finnish Cultural Foundation and the Osuuskunta Tradeka consortium.
Hannu Parikka, managing director of the fund manager, IceCapital Real Estate Asset Management, said in a statement: “Demand for rent apartments is constantly growing in the largest cities and their surroundings.”
The deal follows an earlier agreement in which the two parties agreed on the building of 708 new, privately financed rental apartments in Finland. In addition, YIT sold Ice Capital Housing Fund I two residential building projects in the cities of Espoo and Kuopio in November 2008, for the amount €14 million.