Ilmarinen, Finland’s largest pension insurance company, has created a €100m international indirect investment portfolio.
However, no UK investments will be made initially because the company is discouraged by the currency difference.
The company’s head of real estate, Timo Kankuri, said: “It’s easier to start in Eurozone countries and the currency risk is an issue.
“But in the long run, we’ll learn how to deal with it and we would obviously be interested in investing in Europe’s largest property market.”
Ilmarinen is looking to invest in office and retail property in France, Germany, Spain, Portugal and the Netherlands.
The fund will be managed by Aberdeen Property Investors. Investments will, in the first phase, be made in unlisted property funds and other indirect property investment products.
Kankuri said: “The first steps are not going to be large – in the first 12 months we will invest €100m depending on what funds we can find.”
“But when our knowledge about vehicles and markets improves we will be ready to invest more. “
Ilmarinen has an existing €2.4bn property portfolio in Finland.
References: EGi News 07/03/03
