Finland’s Veritas has described the implementation of Finland's new pension investment rules as a "historic moment" after agreeing a financing arrangement with Nordea for its direct real estate investments.

The agreement is linked to Finland's pension reform, which came into force today (1 July 2026) and allows pension insurance companies to make greater use of debt financing for direct real estate investments than was previously allowed.

"This is a historic moment, as the pension reform now allows us to finance the majority of our direct real estate investments. It puts us on the same footing as other real estate investors and enables more efficient use of capital," Veritas director of real estate investments, Heikki Palmu, said.

Veritas said the capital released through the financing arrangement could be invested in other asset classes, such as equities.

It added that while borrowing would reduce the relative share of real estate investments within its investment portfolio, the real estate assets under management would remain unchanged, with property continuing to play an important role in its investment strategy.

"We are pleased to be involved in implementing a financing solution that supports the company's long-term real estate investments and efficient use of capital,” Nordea head of institutional clients, Eeva Ketola, said.

She continued: “The arrangement is a good example of how we can support the changing needs of an institutional investor through financing within the framework of the new regulatory environment.”

---