Trevian advises Ilmarinen on Oulu precast concrete factory deal – Challenging sales target in difficult times for the real estate market
Since 2020, Trevian Asset Management has acted as asset manager and advisor for the real estate portfolio of the pension company Ilmarinen, which includes 21 properties across Finland. Two industrial properties in Oulu, part of the portfolio, were successfully closed on 31 March 2023. The sold properties have a long-term tenant, the Consolis Parma group, which specialises in concrete construction.
Ilmarinen started a strategic cooperation with Trevian in autumn 2020, with the aim of developing and selling office properties outside the company’s real estate investment strategy to real estate investors and industry players. The concrete factories in Oulu had been for sale for some time before this, but due to both the pandemic and the war in Ukraine, selling the properties became increasingly challenging.
“We appreciate Trevian’s sales efforts: they have managed to close the deals in particularly challenging market conditions. We only have a few properties left to sell and we are confident that the rest will be sold this spring,” says Kenneth Nyman, portfolio manager at Ilmarinen.
In addition to direct contact, the sales strategy for precast concrete plants has been enhanced by various and impressive marketing activities.
“We want to stand out in our sector and also bring new approaches to the real estate industry. The marketing, which is not typical for industrial real estate, has used humorous elements without forgetting the facts. The tactical aim of this approach has been to attract the attention of the target group in the industry media”, says Juha Rantonen, Trevian’s Real Estate Portfolio Manager.
“We are professionally proud that the transaction was completed despite the difficult times, and all parties are satisfied with the outcome. In the current market situation, the sale of the properties has been challenging in some areas,” Rantonen continues.
In exceptionally difficult times for the real estate market, it has been particularly challenging to complete transactions for industrial properties such as precast concrete plants. However, the market is also moderately optimistic about the possibility of positive change.
“There are cautious signs that the market could gradually start to pick up. However, the situation is very fragile and will be very much influenced by developments in the financial markets, and in particular in the banking sector, in the near future. A positive, sustainable market development requires a significant improvement in confidence,” says Reima Södervall, CEO of Trevian.
Trevian Asset Management is a Finnish investment and asset management company specializing in commercial and residential properties. The company produces actively managed real estate equity funds and asset management services optimized for its customers. The services are focused especially for institutional real estate investors, banks, and other professional investors. Trevian’s assets under management near 1.2B€ www.trevian.fi/en
Ilmarinen’s mission is to ensure that our customers receive the pension they deserve for their work. By promoting a better working life, we help our customers to succeed. In total, we are responsible for the pension security of around 1.1 million people. Pension liabilities are backed by more than EUR 56 billion in investment assets. For more information: www.ilmarinen.fi.