LONDON, Aug. 4, 2022 /PRNewswire/ — Starwood Capital Group (“Starwood Capital”), a global private investment firm, and its operating partner Avara Oy (“Avara”) today announced they have sold a a Finnish residential portfolio to Orange Capital Partners.
The portfolio consists of approx. 2,200 apartments is located across 16 cities, with more than 50% of the portfolio value being located in the Helsinki region. The portfolio is characterised by its high-quality profile and commitment to sustainable residential living space.
Starwood Capital, through a controlled subsidiary, acquired the portfolio in 2019 as it saw attractive relative value in the Finnish residential market, coupled with strong supply and demand fundamentals, which contributed to the portfolio’s extremely resilient performance throughout the pandemic. Starwood Capital and Avara were able to execute a large-scale apartment refurbishment programme during their ownership, improving the experience of occupiers and enhancing the portfolio’s sustainability profile.
Starwood Capital, on behalf of its managed funds, is the largest owner-manager of rented residential product in the United States, with more than 120,000 units under management, and a major investor in the sector throughout Europe through its Urbeo platform in Ireland and its ownership position in Dovevivo, a leading living platform across Southern Europe.
The sale of the portfolio represents a further milestone in Starwood Capital’s successful track record in the Nordic region, where it has recently established a 2.3 million square foot logistics platform across Norway and Denmark, and where it is repositioning the Skt Petri Hotel to become the 1 Hotel Copenhagen.
Federico Bianchi, Starwood Capital’s European Head of Asset Management commented: “This transaction is a strong testament to Starwood Capital Group’s focus on investing into high quality, affordable, sustainable homes across our markets. We are able to leverage our global operating expertise alongside local partners, such as Avara, to generate strong returns for our investors. Multifamily and single family rental remains a high-conviction investment strategy for Starwood Capital across Europe driven by urbanisation, household formation trends and a lack of modern supply.”
Harri Retkin, Chief Financial and Investment Officer at Avara says: “We are proud of the partnership with Starwood. It is a great example of our team’s ability to increase investment and portfolio value as a local partner through active hands-on management and by benefitting from our long-term experience and knowledge of the Finnish residential market.”
CBRE acted as financial and real estate advisor to Starwood Capital and Avara on the transaction and White & Case as legal advisor. Avara has been the manager of the portfolio during Starwood Capital’s ownership.