Finland’s Keva has acquired a department store property in Helsinki.

The department store, Stockmann, will continue to operate out of the property under a long-term leaseback and the leases of other tenants will also continue largely as at present. The property is fully let.

Keva, which is responsible for the funding of local government pensions, said the investment provides a good opportunity to add to its real estate portfolio.

“This is a historically important property in a prime location and aligned with Keva’s long-horizon real estate investment strategy. The anticipated return on the investment matches the long-term goals of Keva’s pension fund,” Keva CEO, Jaakko Kiander, said.

“The investment supports Keva’s objective of a steady and adequate real return for pension funds. These days, it is increasingly more important for pension providers to hedge against the risk of inflation.”

Keva has a total of around 130 residential and business properties, mainly in Greater Helsinki and growth centres in Finland, in its real estate portfolio. At the end of last year, the market value of direct real estate investments was around €2.9bn.

“Our focus is on quality premises which we actively develop with our tenants,” Keva head of real estate investments, Calle Roselius, said. “Location is of key importance on the property market. Stockmann’s department store enjoys a prime location, and this is why we consider it will retain its position also going forward.”

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