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.

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).

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.

How to buy a mutual fund

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 will be closed for subscriptions from 1 Oct to 31 Dec 2020. On 1 January 2021, subscribing for units will be possible again. The next subscriptions will be confirmed on 31 March 2021.

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.

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

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.

Corporate responsibilities of the OP-Public Services Real Estate Fund:

Construction

  • During construction, the Fund has its own supervisor at each construction site, and we collaborate actively to minimise our environmental impact. For example, we require that a waste management plan is drafted before a project is initiated, and that waste amount data is submitted after each project has ended.
  • The construction and maintenance of real estate units has a significant effect on employment in Finland. The employment effect of the OP-Public Services Real Estate Fund in 2019 was 1030 person-years in total.
  • The use of wood in construction helps decrease greenhouse gas emissions, sequester carbon and reduces the use of natural resources. 70% of the Fund’s buildings are made of wood.
  • The OP-Public Services Real Estate Fund includes several converted buildings, i.e. buildings that, after having fallen out of use, are renovated for a new purpose and provided with a new lease on life. The carbon footprint of these projects is smaller than in new construction projects, as the process requires a significantly smaller amount of construction materials. Currently, the OP-Public Services Real Estate Fund includes five converted buildings. This year, two more building conversions will also be completed: a nursing home in Helsinki’s Oulunkylä district and a hotel in Helsinki’s Konepaja district.

Environmental certification

  • The OP-Public Services Real Estate Fund is applying for a LEED environmental certificate for a building that is being constructed in Hämeenlinna.

Energy efficiency and investments

  • Energy efficiency and the use of renewable energy are among our most important goals. As part of every project, we evaluate the potential of including renewable energy production in a building, and we will implement this plan if the prerequisites are met.
  • The OP-Public Services Real Estate Fund includes several buildings that generate renewable energy. Nine of the buildings included in the Fund feature a geothermal power station, one a solar power station, and one building also includes an air-water heat pump.
  • The energy consumption of our real estate units is constantly monitored by an energy manager.

Rental services

  • The central locations of our buildings along key public transport lines, cycling lanes and pedestrian walkways provide our occupants with plenty of options when it comes to mobility.
  • We want to encourage the occupants of our real estate units to become more environmentally conscious by providing them with good recycling options and by encouraging them to monitor their water and electricity use. We monitor the amount of waste that our buildings generate, and our goal is to increase our recycling rate.

Economic responsibility

  • The Fund paid a total of 0.4 million euros in taxes in 2019.
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
291 Meur
Serie value (30.06.)
106,96 EUR
Monthly review
Download
Rules
Download
Brochure
Download

Accumulated profit (30.06)

1mth 3mth 6mth 1 y 3 y p.a. 5 y p.a.
OP Public Services Real Estate B - -0,37 % +0,67 % +6,51 % - -
Benchmark - - - - - -

Yearly performance

2015 2016 2017 2018 2019 YTD
OP Public Services Real Estate B - - 0,00 % +0,59 % +7,74 % +0,67 %
Benchmark - - - - - -

Key figures

Volatility 12 m vola 12m Sharpe 12 m Duration
OP Public Services Real Estate B 7,96 % 0,88 -
Benchmark index - - -

Owner-customer benefits

  • As an owner-customer you can sell, buy and trade nearly all our mutual funds (savers’ funds, socially responsible funds, and equity and bond funds) without fees.
  • As an owner-customer, you can also invest in funds by saving through insurance. OP Unit-linked Insurance and OP Savings Agreement are insurance savings products intended for owner-customers that offer an effortless and flexible means for long-term saving. Switching between investment instruments and transferring funds to insurance savings is free of charge.
  • Owner-customers have automatic access to the second fee level on the stock brokerage fee list, in which the brokerage fee is 0.17% (min. 7 euros), while the fee at the first fee level is 0.2% (min. 9 euros).

OP bonuses

In addition to OP bonuses earned through saving and investment, owner-customer earn bonuses from

  • loans
  • funds in accounts
  • purchases you have paid with the OP-Visa credit
  • insurance premiums for home, family and motor vehicle policies.

From 1 November 2020, OP bonuses will accrue from:

  • home loans, secured bank loans, student loans
  • savings and investment accounts
  • mutual fund units and unit-linked insurance
  • non-life insurance bills

The change on 1 November 2020 means that no OP bonuses will accrue from:

  • deposits in current accounts
  • unsecured consumer loans (Flexible Consumer Credit, Special Consumer Credit, One-off Credit and Overdraft Facility)
  • OP hire purchase
  • Purchases paid using OP Visa as a credit card, the balance of credit with interest of OP-Visa and OP-Mastercard cards

OP bonuses are used for the bank’s service charges and insurance premiums.

 

OP Fund Management Company Ltd manages OP mutual funds.