OP Real Estate Asset Management Ltd manages the portfolios of real estate funds that it and OP Fund Management are in charge of, and real estate units of OP Financial Group insurance companies. OP Real Estate Asset Management is the largest real estate fund investor in Finland.
“We have already received enquiries for rent reliefs from some of our tenants – especially from retail, restaurant and other service sectors. This has been expected since those sectors are hit first and the hardest by the stagnant economy and restrictions on movement”, says Tuomas Virtala, Head of Asset Management for Corporate and Institutional Customers at OP Corporate Bank.
Tenants who are private persons are also expected to face difficulties in rent payments as retail, restaurant and other service sectors are major employers in Finland, and employees’ income levels are often directly linked to their working hours. The entrepreneurs and employees in these sectors will inevitably earn less as people stay at home and only use necessary services.
The sectors that are most likely to face difficult times – retail, services and the hotel business – as well as housing cover approximately 60% of all real estate investments in Finland. In all of these sectors, rent forms a significant part of expenses.
“Rents are usually fixed and don’t adjust to changes in the business environment. We believe that rent reliefs will have a significant positive effect on our client companies’ crisis resilience, which in turn supports the long-term performance of funds that invest in those businesses. We want to act responsibly in this situation as well, so it was easy for us to decide that we are open to negotiations and focus on finding solutions with those who require additional support”, Virtala continues.
OP has already announced several other ways to help customers in Finland with any financial difficulties caused by the COVID-19 pandemic, such as offering repayment holidays for home loans and secured consumer loans and facilitating access to bridge financing for companies.
Further information to the media and requests for interviews:
OP Corporate Communications, tel. +358 50 523 9904, viestinta@op.fi