Partners Group acquires off-market last mile logistics portfolio in Finland
Baar-Zug, Switzerland; 13 July 2022
- Portfolio comprised of 19 assets, majority around Helsinki and has a leasable area of c. 140,000 sqm
- The assets are 96% let to a diversified range of industries
- Increasing demand for last mile assets and limited supply underpinning rental growth
Partners Group, a leading global private markets firm, has, on behalf of its clients, agreed to acquire an off-market portfolio of last mile logistics properties in Finland (the "Portfolio), from Mandatum Asset Management, the asset management arm of Finnish insurance company Sampo Group.
The Portfolio consists of 19 assets, including 13 in Helsinki, five in Tampere, and one in Oulu, and has a Net Leasable Area of c. 140,000 sqm. The assets are 96% occupied by over 80 tenants from a diversified range of industries with 100% annual inflation adjustment leases. The assets are strategically located in close proximity to urban areas and are therefore ideally suited for a wide range of occupiers. A limited supply of last mile logistics space combined with strong demand due to rising e-commerce sales volumes is underpinning rental growth in these locations. In addition, conversion of urban industrial premises to residential in recent years has reduced existing stock whilst a strict urban land use policy is restricting new urban developments, pushing down vacancy rates and increasing rents.
Partners Group, alongside its local operating partner Trevian, will execute the value creation plan and seek to scale the Portfolio into a leading platform in Finland. Key value creation initiatives will include re-leasing assets at market rents, executing extensions to fulfil tenant expansion needs, as well as targeted capex initiatives to upgrade facilities with a strong focus on ESG-enhancement.
Anne-Jan Jager, Managing Director, Private Real Estate Europe, Partners Group, says: "This Portfolio is another example of our thematic investing approach in action. We have been actively targeting the logistics sector across Europe and investing in select opportunities in strategic growing locations. The way we work, live and consume is fundamentally changing and is increasing the demand of logistics occupiers in Finland, an export market relying on logistics to support its key economic industries.
Partners Group's Private Real Estate business has USD 18 billion in assets under management globally. The firm deployed c. USD 4 billion of equity across private real estate in 2021, of which approximately 40% was in the logistics sector.
Kirkland & Ellis, Borenius Attorneys, and PwC advised Partners Group.