Pohjola Pankki Oyj : New OP-Rental Yield fund offers diversified real estate investments to private households OP Fund Management Company Ltd is introducing a new direct property investment fund. OP-Rental Yield invests approximately half of its assets in apartments, 30 per cent in commercial premises and up to 20 per cent in construction contracting. The fund's diverse investment product range is enabled by fund advisor Pohjola Property Management and portfolio manager Pohjola Asset Management. As one of the largest real estate property managers in Finland, Pohjola Property Management is also responsible for the fund's contracting projects. Demand for this type of product is high, according to direct customer feedback received by OP-Pohjola, and the company's Consumer Barometer published last autumn. Survey respondents were asked where they would like to invest an extra 100,000 euros. The responses indicated that an average of 22 per cent would be invested in buy-to-let homes. "Investing in apartments on buy-to-let basis is already common in many Finnish households", comments Samuli Sipilä, Managing Director of OP Fund Management Company. "However, private direct property investments are often too concentrated, which makes them prone to risk. Furthermore, managing buy-to-let investments requires plenty of effort, which is entrusted to professional portfolio managers in the case of a fund. A fund makes diversified property investments available to the growing number of small investors. Real estate investments also provide active equity and other security investors with the benefits of asset diversification." Sipilä continues: "The rental apartments in the fund offer stable returns. In turn, commercial premises and construction contracting offer a higher yield potential and the benefit of diversified risks. In most cases, private households do not have the opportunity to directly invest in the latter type of object." Designed for long-term investments, OP-Rental Yield is a non-UCITS fund as defined by the Act on Common Funds. Its minimum subscription is 30,000 euros. The fund is open to redemption and subscription on a quarterly basis. Subscription for fund units is handled through OP Private services. The annual profit share paid by the fund is at least three quarters of its net profit, rendering it similar to direct property investments. Besides households, the fund is targeted at small and medium-sized institutions and foundations. The initial core of OP-Rental Yield comprises apartment stock, with an approximate value of 50 million euros, to be bought from OP Life Assurance Company Ltd. Mainly located in the capital region, the apartments were built in the 2000s and their average tenancy rate is 99 per cent. For more information, please contact: Samuli Sipilä, Managing Director of OP Fund Management, tel. +358 10 252 7196 OP-Pohjola Group is Finland's leading financial services group providing a unique range of banking, investment and insurance services. The Group has the mission of promoting the sustainable prosperity, well-being and security of its owner-members, customers and operating regions through its local presence. Its objective is to offer the best and most versatile package of loyal customer benefits on the market. OP-Pohjola Group consists of some 200 member cooperative banks and the Group's central institution, OP-Pohjola Group Central Cooperative, with its subsidiaries and closely-related companies, the largest of which is the listed company Pohjola Bank plc. With a staff of more than 13,000 OP-Pohjola Group posted consolidated earnings of 601 million euros before tax in 2012 and had total assets of 99.8 billion euros on 31 December 2012. The group has over four million customers. www.op.fi ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Pohjola Pankki Oyj via Thomson Reuters ONE HUG#1694006
Pohjola Pankki Oyj : New OP-Rental Yield fund offers diversified real estate investments to private households
Press spacebar to pause and continue. Press esc to stop.