Investments

Strategy

Cavendo focuses on urban environments with the right prerequisites for strong future underlying growth, such as Stockholm and Helsinki. Cavendo aims to create value when we acquire properties rather than when we sell them. We see deal sourcing as our most essential strength in delivering returns over time.

We invest in good properties that we can make even better

We focus on properties which we believe to be fundamentally undervalued and that we can add an active management approach to. We take a long-term view when we buy, manage and invest in our properties. We work on the assumption that our properties will grow in value for any future owners too. That way we create value not only for our partners but also tenants, the general public and cities that extends beyond our ownership.

We invest in all property classes and currently manage office, retail, residential and community properties. We like to invest in properties on the basis that we have optionality in our business plans. Combined with our strong asset management capacity this enables us to react to future market events rather than trying to predict them beforehand.

Case Study – Antilooppi

Cavendo was founded in 2014 with the aim of offering institutional investors relevant investment opportunities in Stockholm and Helsinki. The Helsinki market at the time was characterized by a weak short-term macroeconomic outlook for Finland. Despite the fact that Finland was still among the top global performers in terms of figures governing long-term growth, (such as spending on R&D, transparency and high-quality education), and that it benefitted from a stable northern Europe welfare state system at the same time, relatively few players were investing in office properties in its fast-growing capital region. More, in fact, were looking to sell. Prices were low, offering strong cash flows often from public tenants and stable, export-oriented Finnish international companies.

Helsinki office platform

With these conditions in mind, Cavendo wanted to build a long-term platform with a specially tailored internal organization to manage the properties in the most optimal way and build shareholder value.

In 2015, the commercial real estate company Antilooppi was founded in Helsinki based on an original seed portfolio of EUR 400 million. Antilooppi is a JV owned 50/50 by AMF Pension and Ilmarinen.

Cavendo advised AMF Pension at the beginning, and Antilooppi during the first two years, to help the growth and development of a management organization. Today, it is one of Finland’s largest real estate companies.