Pension Insurance Company Veritas and Nordea have agreed on the financing of the direct real estate investments of Veritas. The agreement is related to the pension reform that will allow more extensive use of borrowed capital in direct real estate investments. The reform will enter into force on 1 July 2026.
“This is a historic moment as the reform allows us to extend the use of leverage to the majority of our direct real estate investments. This will put us on an equal footing with other real estate investors and enable more effective use of our capital”, says Heikki Palmu, Real Estate Investment Director at Veritas.
The capital that is released as a result of the agreement can be invested in, for example, equities. Borrowing reduces the proportion of real estate investments in the investment portfolio but the real estate assets managed by us remain unchanged. Real estate investments have historically yielded good returns and they will continue to be a significant part of Veritas’ investing activities also in the future.
“We would like to thank the Veritas team for excellent co-operation. We are pleased to be a part of this financing solution that supports the company’s long-term real estate investing and effective use of the capital. This arrangement is a good example of how we can offer financing to support the changing needs of institutional investors in the new regulatory environment”, says Eeva Ketola, who is responsible for institutional customers at Nordea.
“We wish to thank Nordea for good and solution-oriented co-operation during the preparation of the financial arrangement”, comments Palmu.
Further information:
- Heikki Palmu, Real Estate Investment Director, tel. +358 (0)40 5450 018, firstname.lastname@veritas.fi
