JLL advises Morgan Stanley on the sale of a residential portfolio of 1,900 apartments

An investment fund managed by Morgan Stanley Real Estate Investing (MSREI) and its joint venture partner Premico has sold a residential portfolio of 1,900 apartments to a fund managed by Orange Capital Partners (OCP). The portfolio consists of 37 assets across 17 cities in Finland. The total leasable area of the portfolio is approximately 112,800 sq m.

The portfolio is focused on the Helsinki Metropolitan Area and large cities with assets located in well-established residential neighbourhoods adjacent to local amenities. The investor interest in the portfolio was enhanced by the extensive capex programme implemented by Morgan Stanley. Not only was the capex backlog removed but the apartments were also refurbished to upgraded standards. These measures have improved the image of the respective neighbourhoods benefitting entire communities. The capex program also included various ongoing green-energy initiatives providing a path to net-zero carbon.

Ulf Pleschiutschnig, Co-Head of Europe Investments, MSREI: In line with our focus on environmental and social sustainability we have successfully implemented an ambitious improvement and refurbishment programme. We have significantly increased the energy efficiency of the portfolio, bringing it close to net-zero carbon emissions. We have also created a better living environment for our customers by refurbishing the exterior and interior of their homes. We are now excited to have found in OCP a responsible long-term owner of this portfolio who we trust will continue on our journey to improve the quality of these homes for their residents.  At the same time, we are looking forward to continue to invest into the Finnish residential market

Joris Voorhoeve, OCP, Partner: The underlying portfolio is at the core of our investment strategy – affordable and sustainable housing across Europe. We are long-term investors in the residential space and we intend to build on the capex programme accomplished by Morgan Stanley by further modernising the properties and investing in green-energy initiatives.

Tero Uusitalo, Head of Capital Markets, JLL Finland: We are very pleased to have been able to advise Morgan Stanley Real Estate Investing on the successful sale of this large-scale residential portfolio. The transaction demonstrates that the level of international interest in the Finnish residential sector remains high. Further, the transaction is a great example that there is also a lot of activity outside Helsinki.

JLL acted as Morgan Stanley’s sole commercial advisor in the transaction. Borenius acted as the seller’s legal advisor in the transaction.