ICON Real I

STRATEGY


ICON Real Estate Fund I LP was founded in 2010. Its assets are mainly invested in residential properties all over Finland. The crowning glory of the fund’s properties are the building rights for approximately 3,000 square metres in the district of Lauttasaari in Helsinki. The fund’s investors are mainly Finnish companies and private persons.

Since 2010, ICON Real I has yielded its investors an average return of approximately 9% a year. The entire profit is paid to the investors annually. At the end of 2012, the total capital amounted to MEUR 5. The investment period for the fund is 10 years.

The subscription period for this fund has ended.

PROJECTS


Suoramantie 2–10, Kangasala


Located on Suoramantie in Kangasala, this housing block with six floors and 30 apartments was built in 1966. Its total area is 2,332 square metres (floor area).

Harjulankatu 13, Lahti


This housing block was built in 1968 and is located on Harjulankatu in Lahti. The building has four floors and 24 apartments.

Käsityöläiskatu 6, Vaasa


This is a piece of real estate that had been used by an association. At the time of the renovation, only the frame of the dwelling remained. The real estate’s purchase price was EUR 25,000. With the help of the contractor ICON selected from among the tenders invited, the old building was replaced with 12 new apartments in the autumn of 2014. The renovation cost almost a million euros. Due to the renovation, the invested capital was almost doubled in two and a half years, and the final sale price was MEUR 1.5.

Nahkahousuntie 5, Helsinki


This is an office and warehouse building built in 1969 in the Lauttasaari district of Helsinki. ICON Real Estate Fund II owns 17% and ICON Real I owns 50% of it. Our aim is to retain the property’s value and attractiveness for a little while longer, after which the old building will pulled down and a new eight-storey housing block will be built in its place. The new building will have 52 apartments, with 46 parking spaces in the basement. The project is scheduled for completion in 2017.

HOW PROFIT IS FORMED


2011 was the first year that profit was disbursed to the investors. The total annual profit accrued for investors amounted to approximately 13.5% of the invested capital. The profit was made up of the profit from the sale of the apartments in Kangasala. In 2012, the profit amounted to 4%, which was a result of the fact that not all the renovated apartments in the Housing Company Suoramantie 2 had yet been sold in the financial period in question. In addition, the purchase of the real estate in the Turku port area fell through. More than half a million euros had been reserved for this project for about six months. In 2012, we bought an office building on Nahkahousuntie 5 in Helsinki. The building will be demolished and replaced with a new housing block, which will be sold as soon as it has been completed. When this project is realised, the predicted average profit for investors over five years will be approximately 15–17% p.a.

PROCESS CHART

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