OP-Palvelukiinteistöt

OP-Public Services Real Estate Fund

Steady return from Finnish public services real estate
1

The easiest way to invest in Finnish real estates

OP-Public Services Real Estate Fund enables you to become involved in new and growing property investments: nursing homes, sheltered accommodations, hospitals and day-care centres.

2

Long-term leases secure steady rental income

Public services real estates generate steady rental income at low risk. The leases of the fund's property investments are often 10–15 years.

3

Great fund for moderate investors for investment diversification

OP-Public Services Real Estate provides a low-risk investment option for asset diversification with return expectations lower than in bond markets and with lower risk than in equity markets.

Buy fund units

Real estate fund invests in public services real estates vital to society

OP-Public Services Real Estate is a non-UCITS fund whose story is based on the provision of services needed by Finnish citizens in the course of their lives and also vital to society.

OP's real estate fund spreads its investments widely across real estate utilised in education, social services, physical culture, sports and healthcare services provided by society. Such real estate can host, for example, nursing homes, day-care centres, schools, multipurpose arenas or sheltered accommodations. The fund also acts as a developer in the Helsinki Metropolitan Area growth centres, university towns and provincial centres.

Long-term leases guarantee steady return

The main source of income of OP-Public Services Real Estate is rents. The leases are often 10–15 years.

The fund's total income consists of:

  • rental income from real estates
  • an increase in the market value of investments.

The fund invests directly in property and securities entitling to such property, in shares in limited partnerships engaged in property investment and in shares in housing companies and real estate companies.

OP-Public Services Real Estate also makes use of leverage to improve returns and diversification.

The real estate fund annually distributes at least 75% of its realised proceeds to its unitholders. The remaining share will remain in the fund to increase the funds value. Annual dividend has been paid as follows: €0.43 (2019), €1.66 (2020), €2,03 (2021), €3.14 (2022), 2,67 e (2023).

Choice for moderate investors

OP-Public Services Real Estate suits investors who

  • appreciate good and steady returns in the form of income units
  • appreciate return higher than in bond markets and lower risk than in stock markets
  • invest with a long-term horizon
  • search for alternative investment types and diversify their investments into real estate assets.

Now you can invest in real property even with a small amount - OP-Public Services Real Estate Fund has no minimum subscription.

OP Public Services Real Estate Income unit

+2,07 %

year

(6)

Risk level

morningstar™

ESG
Buying and selling units in real asset funds Buy order, sell order

Special common funds OP-Rental Yield, OP-Public Services Real Estate and OP-Forest Owner

You can make buy and sell orders anytime, but buy orders will be executed four times a year and sell orders twice a year.

Buying

When you place a buy order, it will be executed on the last day of the same quarter at that day’s value. Buy orders will be executed on 31 March, 30 June, 30 September and 31 December.

Example: if you place a buy order by 16.00 on 31 March, it will be executed on 31 March.

Buy order Execution date
1 January–31 March 31 March
1 April–30 June 30 June
1 July–30 September 30 September
1 October–31 December 31 December

Selling

When you place a sell order, it will be executed on the last day of the next six-month period at that day’s value. Sell orders will be executed on 30 June and 31 December.

Example: if you place a sell order by 16.00 on 30 June, it will be executed on 31 December.

If the order execution date is not a weekday, the order will be executed on the previous weekday. After this, the fund is valued. Valuation generally takes 20 days, after which you can view your executed buy and sell transactions in your portfolio. Valuation may take longer if the fund’s assets need to be realised to pay for redemptions.

Sell order Execution date
1 January–30 June 31 December
1 July–31 December 30 June
Online fees and charges
Subscription fee Annual management fee Redemption fee
2,0 % 1,9 % 1 %

If the investment is held under 4 years, at the moment of redemption we will charge a 3% fee and, for investments held under 2 years, a 5% fee. Subscription and redemption fees are refunded to the fund. The fund's value is calculated four times a year and the fund units generate OP bonuses for those private customers who are also our owner-customers.

Portfolio manager's review

Read the portfolio manager's review on the fund's Finnish pages.

Investment policy

OP-Public Services Real Estate Fund is a non-UCITS fund which invests its assets in the service infrastructure of social education, physical culture and sports, social welfare, and health care services, comprising care services, child day care, education, multipurpose arenas, as well as service and hotel living. The fund also acts as builder of the above-mentioned service infrastructure. The fund mainly invests directly in commercial property and securities entitling to such property, in shares in limited partnerships engaged in property investment and in shares in housing cooperatives and real estate companies.

The fund acts as owner and lessor of the properties and principally does not take part in providing care services. Lessees are both private and public providers. The fund invests its assets in targets in areas for which long-term demand is expected.

The fund employs financial leverage, as is customary in property investment. In the base case, leverage is 30 per cent on top of the net value and it can no more than 50 per cent in a normal situation.

All costs arising from maintaining, owning and trading buildings and expert services used in property trading, which may have a substantial effect on the Fund’s return, will be paid using the Fund’s assets.

Responsibility of the fund

The Fund promotes environmental and social characteristics by providing healthy and safe facilities for social use in the public and private sectors. The investment products offer comfortable, practical and modern work environments for the nursing, education and service sectors, for example. The Fund favours low-carbon options and energy-efficient solutions. In selecting investments, we place emphasis on the sustainability of the properties’ location and analyse the accessibility and convertibility of the properties.

The sustainability indicators monitored include the average energy class, the use of renewable energy in properties, the amount of wood construction and new construction involving demolition, the number of beds in nursing facilities, and the number of certified properties.

This financial product promotes environmental or social characteristics, but sustainable investment is not its objective. For any sustainable investments made in the Fund, those investments in line with the EU Taxonomy which have set climate change mitigation as their environmental goals are considered sustainable investments. Climate change mitigation is promoted by investing in the options that meet the requirements of the EU Taxonomy.

More details Basic data, performance and fact figures

Basic data

Fund manager
OP Real Estate Asset Management Ltd
Benchmark index
No benchmark index
Start date
01.11.2017
ISIN
FI4000281738
fund serie
Income unit
Fund size
395 Meur
Serie value (30.06.)
115,43 EUR
Monthly review
Download
Key Information Document
Download
Rules
Download
Sustainability data
Download

Accumulated profit (30.06)

1mth 3mth 6mth 1 y 3 y p.a. 5 y p.a.
OP Public Services Real Estate B - +0,83 % +1,54 % +2,07 % +4,99 % +4,32 %
Benchmark - - - - - -

Yearly performance

2018 2019 2020 2021 2022 YTD
OP Public Services Real Estate B +0,59 % +7,74 % +2,70 % +6,33 % +5,08 % +1,54 %
Benchmark - - - - - -

Key figures

Volatility 12 m vola 12m Sharpe 12 m Duration
OP Public Services Real Estate B 5,70 % - -
Benchmark index - - -
Portfolio manager
The portfolio manager of the funds is OP Property Management. We manage several real estate funds investing in residential and commercial properties, plots and forest land.
Owner-customers’ saving and investing benefits

As our owner-customer, saving and investing is especially worthwhile thanks to the excellent benefits you receive.

Your benefits when investing in funds or through insurance:

  • Buy and sell almost all OP mutual funds with no fees.*
  • You earn 0.325% OP bonuses from mutual fund and insurance assets.** 
  • Begin saving through insurance free of charge. 
  • Switch between investments, invest additional funds and change your payment and investment plan for OP Unit-linked Insurance and OP Savings Agreement free of charge in our digital services.  

Your benefits in equity and ETF investing:

  • Open an equity savings account or book-entry account free of charge.
  • You get a discount on equity trading and a 1% fee ceiling when trading in Finnish listed companies through a book-entry account The discounts apply in digital services.
  • Get access to free stock picks and analysis.
  • Get a discount on the service packages for savers and investors:
    Equity savings account: 
    Saver: €0/month (normally €2.99/month)
    Investor: €9.99/month (normally €14.99/month)
    Book-entry account: 
    Saver: €0/month (normally €2.99/month)
    Investor: €0/month (normally €5.39/month)

Other benefits:

  • Only owner-customers can invest in Profit Shares.

Remember to make use of all benefits:

*Standard fees are charged for the following special common funds: OP-Public Services Real Estate, OP-Forest Owner, OP-Rental Yield, OP-Alternative Portfolio and OP-Private Equity.

**OP bonuses are automatically used to pay the bank’s service charges and insurance premiums. No OP bonuses are accrued from the R2 Crystal special common fund or institutional classes of funds. The following investment products linked to insurance assets do not accrue OP bonuses: JPM Russia A, JPM Emerging Europe Equity Fund, and BlackRock GF Emerging Europe Fund A. OP bonuses are accrued from unit-linked insurance policies, excluding Individual Unit-linked Insurance and Individual Capital Redemption Contracts.  

The fund's other unit classes

OP-Forest Owner
By investing in OP-Forest Owner you can enjoy the potential of forest with a smaller amount than in regular direct forest purchase and, furthermore, experienced professionals take care of all forest management solutions for you.
Varho
OP-Alternative Portfolio
OP-Alternative Portfolio invests in various alternative investment products, such as real estate, infrastructure projects, farmland and forest estates, and private equity.
OP Vuokratuotto
OP-Rental Yield
The residential property fund owns rental apartments and commercial premises in Finland. Fund also rents out the apartments and commercial premises in its portfolio, and is engaged in construction contracting.
Reaaliomaisuuteen sijoittavat rahastot
Other real asset investment funds
Through our special common funds investing in real assets, you can invest in real estate and forest easily and conveniently without a large initial capital outlay. Learn more!

Remember that investment always involves risks. The value of investments can rise and fall, and an investor can lose part or all of the money they invest. OP funds are managed by OP Fund Management Company Ltd, with OP cooperative bank acting as its agent. Normal transaction costs are charged for the following special common funds: OP-Public Services Real Estate, OP-Forest Owner, OP-Rental Yield, OP-Alternative Portfolio and OP-Private Equity special common funds.