Titanium Rahastoyhtiö Oy, a subsidiary of the asset management company Titanium, has announced a temporary suspension of redemptions for the Special Investment Fund Titanium Hoivakiinteistö. This decision follows an unusually high volume of redemption requests and a subdued real estate transaction market, as outlined in the fund’s rules.
The investment targets of the Special Investment Fund Titanium Hoivakiinteistö include elderly care homes, service housing for special groups, health centers, daycare centers, and properties related to social and youth services.
Redemptions will resume once sufficient liquidity has been secured through the means specified in the fund’s regulations, ensuring that the interests of all unit holders are safeguarded.
“Trading activity in the real estate market has been limited, but expectations of declining interest rates are anticipated to boost real estate transactions in 2025,” the company stated in a press release.
According to Titanium, the temporary suspension of redemptions will not affect the fund’s value or its returns. The company also noted that the suspension is not expected to have an immediate impact on Titanium’s financial performance or position. The firm’s strategy and long-term financial objectives remain unchanged.
The fund provides investors with an efficient way to benefit from the potential of an attractive real estate class, targeting an annual return of approximately 6-7%, primarily derived from rental income. As of November 2024, the fund’s portfolio was valued at €680 million, with capital amounting to €473 million. The fund included 143 properties with a total leasable area of 280,000 square meters.
This announcement follows a similar decision by the OP Financial Group at the end of 2024, when it suspended redemptions and new subscriptions for two of its real estate funds, OP Vuokratuotto and OP-Palvelukiinteistöt Special Investment Funds. That move generated significant public discussion in Finland regarding real estate fund liquidity and market dynamics.