Finnish Pension Fund Wants to Double its U.S. Investments with NYLife
Ilmarinen Mutual Pension Insurance Co., Finland’s earliest pension fund, and New York Life Insurance Co. have formed a new joint endeavor to own and obtain U.S. commercial properties.
New york city Life seeded the endeavor with a portfolio of initial financial investments: 6 workplace properties in Boston, Washington DC, Charlotte, San Francisco, Los Angeles and Orange County. However, the residential or commercial properties have yet to be specifically recognized other than one being the 295,451-square-foot Westory Structure in Washington, DC, inning accordance with Ilmarinen.
The combined worth of the portfolio is around $620 million. The objective is to roughly double the volume of the joint venture’s property investments in the coming years.
“The bought properties represent a geographically diversified portfolio in growing cities on both the East and West Coast of the United States. Our investments will focus on office homes that are technically sound and functionally modern-day with good occupancy rates,” said Mikko Antila, Ilmarinen’s portfolio supervisor in charge of international real estate financial investments.
Ilmarinen’s share of the joint endeavor is 49% and New York Life holds the rest.
“The tactical partnership with a conventional and reputable institutional investor provides us a strong structure to broaden our investments in United States property markets. The collaboration provides us deep insight into regional business property markets,” Antila said.
Mark Talgo, head of New york city Life Realty Investors, said the JV enables New york city Life to cast a wider web within the workplace sector, and offers further diversification to the company portfolio.
This new real estate collaboration supports Ilmarinen’s financial investment method which focuses on enhancing the international diversification of its realty financial investments. Recently, Ilmarinen has purchased the United States housing market and in another office property in the greater Washington D. location. In addition to Finland, the company has European direct realty financial investments in Germany, Belgium and the Netherlands.