Real investments include investments in real estate, infrastructure and forests. Real investments are physical investments that can rarely be covered by another option, which ensures that they remain in demand, no matter the economic cycle.
The investments yield a steady, long-term cash flow and their value usually grows hand-in-hand with inflation. Real investments have a low correlation with the equity and fixed income markets and experience moderate volatility.
The majority of Etera’s real investments lie in real estate. Other real investments include infrastructure projects and funds, forest assets and loans, which are secured by real estate or any of the other real assets mentioned above.
Etera is one of Finland’s largest real estate investors, with close to one billion euros invested in properties. The majority of the real estate investments are direct investments in Finnish real estate. We also invest in real estate funds. Sustainability is at the core of our real estate investments and construction. New construction also has an important employment effect.
Well-diversified real estate portfolio
Etera invests in real estate because it creates relatively stable returns and provides protection against inflation. Real estate prices generally mimic economic cycles with a delay and they offer one method of diversifying the investment portfolio. Etera’s investment portfolio is diversified in terms of the various uses of the real estate, its geographical location and lessees.
Investments in commercial, office and residential properties
The majority of Etera’s real estate investments are direct investments in Finnish commercial, office and residential real estate as well as housing companies. Direct real estate investments are primarily made in new construction projects being erected in central locations. Etera also invests in assisted living facilities and senior citizen facilities.
Rental properties are long-term investments
Etera also has investments in rental plots that house blocks of flats. Etera has acquired properties in the Helsinki capital region and leased them under long-term agreements to construction companies or housing companies established by them. Etera remains the long-term owner of the properties.
Environmentally responsible construction
Etera is helping to build Finland through its real estate investments. In direct real estate investments we stress life-cycle thinking, flexibility in change situations and taking environmental impacts into account. New office premises constructed for Etera have LEED certification. In residential properties our goal is good energy efficiency.
Etera is part of the Finnish Energy Efficiency Agreement Scheme. We also take into account the source of the energy; Etera’s electricity portfolio has received a certificate for green electricity, which means that Etera’s properties use electricity originating from renewable energy sources. Users of the properties are regularly asked for feedback, based on which Etera develops its operations. Our goal is to achieve good, long-lasting tenancies.
Fund investments complement the real estate portfolio
We also have real estate investments in both Finnish and foreign real estate funds. Through the funds, we can achieve diversification for our real estate portfolio with objects that would be challenging in the form of direct investments, such as large investment objects or those requiring specialised expertise. Investing in funds also offers the opportunity to increase the geographical diversification of the portfolio, and foreign funds also enable diversification in market cycles.