United Bankers Special Investment Fund, UB Nordic Property Fund, has on 30th November 2021 completed the acquisition of the Ideapark shopping center in the city of Oulu in the North Ostrobothnia region in Finland. This is the largest single acquisition in the fund’s operating history, with a purchase price of approximately EUR 60 million. Ideapark is located in the Ritaharju area of Oulu, Finland’s fifth largest city. Ideapark has a very low vacancy rate and the shopping center’s sales have remained at an excellent level even during the pandemic.
Ideapark in Oulu fits well into the investment strategy of the UB Nordic Property Fund. Although the property is of high quality and in good condition, the Fund intends to develop it, especially from the point of view of energy efficiency.
“We estimate that there will be demand for retail premises in the future, even though they were among the worst hit sectors during the pandemic. Thus, a more rigorous analysis had to be conducted on the target. Simply put, the pandemic has helped us to identify survivors who have the potential to succeed in the future. The weight of the retail space segment has been small in our fund in the past, so in terms of diversification and risk-return ratio, Oulu’s Ideapark complements our real estate portfolio brilliantly,” says Jaakko Onali, Portfolio Manager at UB Nordic Property Fund.
The strategy of the UB Nordic Property Fund is to invest in stable return properties in Finland and other Nordic countries. The fund’s investments include logistics and industrial properties, offices, retail real estate and plots. The fund’s capital had increased to EUR 311.4 million (GAV) from its inception in May 2016. The fund’s assets, including the latest acquisition, currently amount to approximately EUR 400 million.
UB Nordic Property Fund is part of United Bankers’ Real Asset investment products family, which includes funds investing into real estate, forestry, REITs, and infrastructure. By the end of June 2021, the groups AUM amounted to approximately EUR 4,2 billion, of which 36 per cent was invested into real assets.
United Bankers Plc is a Finnish expert on asset management and investment markets, established in 1986. United Bankers Group’s business segments include asset management and capital markets services. In asset management, the Group specializes in real asset investments. United Bankers Plc is majority-owned by its key personnel and the Group employs 137 employees (FTE) and 34 agents (30 June 2021). In 2020, the United Bankers Group’s revenue totalled EUR 34.4 million and its adjusted operating profit amounted to EUR 8.6 million (IFRS). The Group’s managed assets amount to approximately EUR 4.2 billion (30 June 2021). United Bankers Plc’s shares are listed on the Nasdaq Helsinki Stock Exchange List. The Group companies are subject to oversight by the Finnish Financial Supervisory Authority. For further information on United Bankers Group, please visit www.unitedbankers.fi