Real Estate Debt and Secondaries Ky (REDS), a real estate fund of funds set up by Pohjola Property Management Ltd, has accumulated EUR100 million at its first closing. The funds will be invested in international real estate funds' secondary interests, real estate loan funds and other investment instruments that specifically utilise the real estate market situation.
According to Markku Makiaho, Managing Director of Pohjola Property Management Ltd, the fact that REDS was set up is a sign of a gradual change in the market situation.
"Finnish institutions are again prepared to invest in foreign real estate through funds and other indirect investment instruments," says Makiaho. "This fund is a good indication of the level expertise in indirect investment at Pohjola Property Management Ltd and the trust shown to it by investors. The three pillars of our investment strategy respond well to the current market situation in which the economic uncertainty and tightening regulation create good purchase and financing opportunities to competent investors."
Pohjola Property Management Ltd collected the group of investors for REDS and act as the fund's advisor. OP-Pohjola Group's insurance companies own 20% of the structure. In practice, REDS' investment strategy is carried out by Real Estate Director Pami Pihlstrom and Portfolio Manager Antti Palken, who have long careers in indirect investment at Pohjola Property Management Ltd.