Strong growth continues for Evli Fund Management Company's residential fund: returns exceeded 10 percent in 2017
EVLI BANK PLC PRESS RELEASE MARCH 13, 2018 1.00 PM
The EAI Residential I fund, founded in October 2015, has completed its third investor joining.
EAI Residential I Ky develops and rents out row houses and balcony-access blocks of flats in the Uusimaa province. The strategy of the fund is founded on understanding clients' needs and responding to them with residential development. The fund acquires the plots and develops the projects, performing as the general contractor. The operating model benefits investors who earn the developer margin and a significantly higher rental income percentage than they would if the completed projects were acquired from construction companies.
"Thanks to its own residential development operations, the fund is able to offer its investors a return expectation that is exceptionally high for rental residential investment, and excellent quality for the cost for its tenants. Investor demand has exceeded our construction volume and occupancy rate has been close to 100 percent", says Tero Tuominen, Director of Evli's alternative investment funds.
The value of the fund's real estate assets was EUR 40 million at the end of 2017 and the near-term goal is to attain a diversified residential portfolio in Uusimaa with a total construction cost of approximately EUR 140 million. In 2017 the fund returned over 10 percent to investors. Since founding, return has been 19.3 percent and annual return 8.3 percent. Investors include private individuals and institutions.
"The fund is an excellent example of how professional portfolio management can generate genuine added value to investors. EAI Residential I is Evli Fund Management Company's first real estate fund and its success has laid down a solid foundation for Evli's growing alternative investment product offering, in which the capital managed by the real estate funds has grown by more than EUR 150 million during 2018," says Tero Tuominen.
For more information, please contact:
Tero Tuominen, Director, Alternative Investment, Evli Fund Management Company Ltd, tel. +358 9 4766 9905, email@example.com
Evli Fund Management Company Ltd is a wholly-owned subsidiary of Evli Bank.
Evli Bank Plc
Evli is a bank specialized in investments that helps institutions, corporations and private persons increase their wealth. The product and service offering includes mutual funds, asset management and capital markets services, alternative investment products, investment research, administration of incentive programs and Corporate Finance services. The company also offers banking services that support clients' investment operations. Evli is the highest ranked and most used institutional asset manager in Finland*.
Evli has a total of EUR 11.2 billion in client assets under management (net 12/2017). The Evli Group's equity capital totals EUR 72.5 million and its BIS capital adequacy ratio is 15.0 percent (December 31, 2017). The company has more than 200 employees. Evli Bank Plc's B shares are listed on Nasdaq Helsinki Ltd.
*TNS Sifo Prospera External Asset Management Finland 2017, SFR Scandinavian Financial Research Institutional Investment Services, Finland 2017 (shared first place).
Distribution: key media, www.evli.com