eQ Community Properties Fund Bolsters Portfolio with Strategic Acquisition from Ilmarinen

eQ Community Properties Fund (AIF), Finland's largest special investment fund and community property investor, has agreed with Ilmarinen Mutual Pension Insurance Company on the acquisition of properties from Ilmarinen and Ilmarinen's investment into eQ Community Properties Fund (AIF). The fund acquired four properties from Ilmarinen, which are located in Helsinki, Espoo, and Vantaa, with tenants including the City of Helsinki, the Western Uusimaa Wellbeing Services County, the City of Vantaa, and Aimo Park Oy. Ilmarinen simultaneously made an investment into the fund, executed on 31 December 2024.

Jennifer Eloheimo, investment director at eQ Community Properties Fund (AIF), commented on the acquisition: "eQ Community Properties Fund (AIF) is the largest special investment fund in Finland and also the largest community property investor. Ilmarinen's properties are very well matched with the fund strategy. The Finnish community property sector is a growing niche segment, in which we have a very robust and long-time experience and deep understanding. It is especially great to be able to deepen our relationship with Ilmarinen and show our potential in this segment to the larger professional investors."

The market value of the fund's property portfolio is EUR 1.8 billion as per December 2024, with assets located in the six largest growth centers in Finland, and over half located in the Helsinki Metropolitan Area. The fund is the largest community properties investor and developer in Finland, with a portfolio of 161 properties.



The acquisition of properties from Ilmarinen aligns with eQ Community Properties Fund's investment strategy in several ways. First, the acquired properties are well-matched with the fund's strategy, indicating a strong fit with the fund's investment objectives and criteria. Second, the Finnish community property sector is a growing niche segment, which aligns with the fund's focus on areas with potential for growth and higher returns. Third, the fund has a "very robust and long-time experience and deep understanding" in this segment, which allows it to leverage its expertise and gain a competitive edge. Finally, the acquisition allows the fund to deepen its relationship with Ilmarinen, potentially leading to future collaborations and opportunities.

However, the fund's increased exposure to the Finnish community property sector also presents potential benefits and risks. Benefits include the growing niche segment, the fund's robust experience and understanding, the strategic fit of the acquired properties, and the strengthening of the fund's relationship with Ilmarinen. Risks include market fluctuations, tenant risk, regulatory risk, and concentration risk. By carefully managing these risks and leveraging its experience and understanding of the sector, the fund can maximize the potential benefits of this increased exposure.

In conclusion, eQ Community Properties Fund's acquisition of properties from Ilmarinen is a strategic move that aligns with the fund's investment strategy, offering potential benefits and risks. By leveraging its expertise and managing the associated risks, the fund can maximize the value of this acquisition and continue to grow as the largest community properties investor and developer in Finland.