Invest in Finnish urban housing

The fund is a closed Alternative Investment Fund (AIF)  investing in non-subsidised rental housing in Finland’s growth centres. Its strategy is to generate stable cash flow and returns with Avara’s own project development and by making use of the projects of construction companies. The fund’s investment commitments total EUR 45 million, enabling a total value of EUR 115 million with a moderate leverage ratio. The fund is fully invested.

• The investment phase has ended
• 684 apartments completed

The marketing of the fund ended before the disclosure obligations on sustainable finance (SFDR) entered into force. Although the fund is not classified according to SFDR, it has nevertheless followed mainly the same sustainability-related principles and criteria in its investments as our other AIFs, and has taken into account sustainability risks, environmental, social and governance factors in its investment activities.

The fund is a closed Alternative Investment Fund (AIF) which invests in projects of affordable rental housing implemented with short-term interest subsidy loans in Finland’s biggest and most rapidly growing centres of growth. 

The funds’ investments seek to promote the opportunities of low- and middle-income households living in and moving to growth centres. In particular, the fund strives to aid in providing housing solutions that are affordable in relation to their income. In addition, the housing production of the fund strives to be mainly infill construction  that integrates into the current community structure, and located mainly in areas where there is a long-term need for affordable housing. Construction also strives to focus on such growth areas, where the supply of affordable rental housing may not match the long-term demand.

The new properties are largely based on Avara’s own project development. The fund’s investment commitments exceed EUR 27 million, enabling investments of more than EUR 200 million.

• The target size is 700 apartments
• 458 apartments completed
• 179 apartments under construction

The fund promotes, among other characteristics, environmental or social characteristics in accordance with Article 8 of the Sustainable Financial Disclosures Regulation (2019/2088) ("SFDR").

The fund is actively managed, taking sustainability risks into account. We estimate that sustainability risks have no material impact on the fund's financial performance conditions.

The periodic disclosure (Annex IV) of the fund's sustainability information in accordance with the SFDR can be found here.

The real estate fund consists of affordable, subsidised rental apartments financed with interest subsidy loans and Arava loans; the fund is a non-profit owner of affordable rental housing that is subject to oversight by the Housing Finance and Development Centre of Finland ARA.

• Comprises 4,308 rental apartments (12/2023)

• The fund is fully invested and in the stage of developing its portfolio

Avara Star was a real estate fund established in cooperation with Starwood Capital. The fund consisted of non-subsidised rental apartments, with rental income focusing on the Helsinki region and other growing urban centres in Finland.

During the ownership of Starwood Capital and Avara major additional value and resilience was created through efficient implementation on a large-scale refurbishment programme of the apartments and further improving the sustainability profile of the assets.

• Sold  to Orange Capital Partners 08/2022

• Comprised approx. 2,200 rental apartments 

• The number of buildings was 71