Starwood JV sells portfolio of 2,200 units

Helsinki, Finland. Photo by Julius Jansson on Unsplash

Starwood Capital Group sold a significant portion of its residential portfolio in Finland after more than two years of ownership. The company, together with its operating partner Avara Oysold the Finnish residential portfolio to Orange Capital Partners for an undisclosed price. CBRE acted as financial and real estate advisor to Starwood and Avara, while white and case served as legal counsel.

The portfolio totals 2,200 apartments in 16 cities in Finland. According to Starwood, 50% of the value of the portfolio is located in the Helsinki region. Starwood characterized the portfolio as being made up of high-quality communities that provide sustainable living spaces.

Starwood Capital acquired the multi-family portfolio through a subsidiary in 2019 when the company felt there was attractive relative value in the Finnish residential market. The Finnish market showed strong supply and demand fundamentals, which also contributed to the resilience of the portfolio throughout the pandemic. During his ownership, Starwood and Avara, who served as the portfolio’s property manager, also carried out major renovations in the communities.

EXPAND ITS EUROPEAN AND AMERICAN PRESENCE

Federico Bianchi, European head of asset management at Starwood Capital, said in prepared remarks that the company is focused on investing in sustainable, affordable and high-quality homes in its markets. Bianchi added in his prepared statement that the multi-family and single-family rental sectors are a high-conviction investment strategy for Starwood in European markets. Beyond the multi-family sector, Starwood is also working on a 2.3 million square foot logistics platform across Norway and Denmark, as well as the repositioning of the Skt Petri Hotel in Copenhagen into 1 Hotel Copenhagen.

While Starwood is a major investor in the European residential sector, the company and its managed funds have more than 120,000 units under management in the United States. In November, Starwood Real Estate Income Trust Inc., a REIT managed by a subsidiary of Starwood Capital Group, acquired a multifamily portfolio of 62 properties with 15,460 units located in 10 states.

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