NY Life, Finland Fund Enter JV To Build $1.2B U.S. Office Portfolio

New York Life Real Estate Investors has entered a joint venture with Finland’s oldest pension fund to acquire and build a portfolio of U.S. office properties worth $1.2B.

The JV with Ilmarinen Mutual Pension Insurance Co. was seeded by a portfolio of six New York Life properties, including office buildings in Boston, Washington, D.C., Charlotte, San Francisco, Los Angeles and Orange County. The current value of the portfolio is estimated to be $620M with a goal to continue acquiring core and core-plus office investments in major U.S. markets in order to reach $1.2B in assets.

Ilmarinen is worth an estimated $45.5B and has approximately $5.2B invested in real estate across the globe. About 16% of its total investments are international.

“This exciting venture with Ilmarinen complements New York Life’s focused real estate strategy of acquiring institutional-quality assets that enjoy a long-term competitive advantage and offer stable and attractive risk adjusted returns,” NY Life Senior Managing Director Mark Talgo said in a statement.

NY Life sold a 49% interest to Ilmarinen in the JV, and will retain the remaining 51% interest in the venture.

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