Starwood Capital and Avara sell a portfolio of 2,200 apartments in Finland to Orange Capital Partners

Starwood Capital Group (“Starwood Capital”) and their operating partner Avara Oy (“Avara”) have sold a residential portfolio in Finland to Orange Capital Partners (“OCP”). The portfolio of approx. 2,200 apartments is spread across 16 cities, with more than 50% of the portfolio value being located in the Helsinki region. The portfolio is characterised by its high-quality profile and commitment to sustainable residential space. Avara has been the manager of the portfolio during Starwood Capital’s ownership.

During the ownership of Starwood Capital and Avara major additional value and resilience was created through efficient implementation on a large-scale refurbishment programme of the apartments and further improvement of the assets’ sustainability profile.

CBRE acted as financial and real estate advisor to Starwood Capital and Avara on the transaction and White & Case as legal advisor.

Harri Retkin, Chief Financial and Investment Officer at Avara says: “We are proud of the partnership with Starwood Capital. It is a great example of our team’s ability to increase the investment and portfolio value as a local partner through active hands-on management and by benefitting from our long-term experience and knowledge from the Finnish residential market.”

Ilpo Münster, Head of Investment Properties at CBRE Finland says: “We are very pleased to have acted as the financial and real estate advisor on this landmark transaction on the Finnish residential market and grateful for the smooth co-operation with Starwood Capital and Avara throughout the process, as well as the buyer and their advisors. Despite increasing headwinds over the recent months, the portfolio achieved strong interest from both local and global parties. We congratulate the parties on the transaction.”

Starwood Capital Group Starwood Capital Group is a private investment firm with a core focus on global real estate, energy infrastructure and oil & gas. The Firm and its affiliates maintain 16 offices in seven countries around the world, and currently have approximately 4,000 employees. Since its inception in 1991, Starwood Capital Group has raised over $70 billion of capital, and currently has over $120 billion of assets under management. Through a series of comingled opportunity funds and Starwood Real Estate Income Trust, Inc. (SREIT), a non-listed REIT, the Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving. Starwood Capital also manages Starwood Property Trust (NYSE: STWD), the largest commercial mortgage real estate investment trust in the United States, which has successfully deployed over $87 billion of capital since inception and manages a portfolio of over $25 billion across debt and equity investments. Over the past 30 years, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises in both the private and public markets. Additional information can be found at starwoodcapital.com.

Avara Oy is Finland`s leading residential real estate investment and asset management company. Avara manage residential real estate in several funds with aggregated value of €1.2 billion. Avara is responsible for the investment and asset management of about 8,000 rental apartments and develops and creates new services for living. Avara acts as a valued, trustworthy and well-respected strategic partner for investors seeking to invest in residential real estate in Finland. Additional information can be found at avara.fi.