FinCap's new fund take advantage of the construction cycle

8.11.2019

FinCap Fund II Ky has started operations and has initially purchased approximately 100 apartments in growth centers in Finland. The fund's strategy is to purchase and rent out completed or pending apartments from construction companies. “The returns of our first fund was largely based on the construction margin, but this time the fund generates returns through leasing and long-term value growth,” says FinCap CEO Janne Kotamäki.

In the 1st closing the fund raised approximately EUR 15 million and it intends to acquire 350-400 homes. Following the 2nd closing in spring 2020, we believe the fund's portfolio will rise to over 600 homes. As the construction boom weakens, construction companies face increased stock of unsold apartments. “Our new fund is a natural extension of FinCap Housing Ltd's 650-apartment portfolio, which was established in spring 2019,” says Raoul Konnos, CFO of FinCap Real Estate Funds. The Fund's completed homes have been leased within a month or so, as unlike many other funds, FinCap's operations cover the entire value chain of the real estate market.

FinCap Group’s four Real Estate business lines are Funds, Development, Management and Brokerage. The Group's net sales in 2018 were approximately EUR 13 million.

For more information:

Raoul Konnos, CFO, FinCap Real Estate Funds Ltd, tel. +358 40 5155 893, raoul.konnos@fincap.fi

www.fincap.fi

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