Log buildings that support sustainable development are a good investment for the OP-Public Services Real Estate Fund special investment fund, and, at the same time, a strong contribution to people's well-being. Long-term cooperation with Hoivarakentajat has enabled positive everyday experiences in dozens of log daycare centres and service homes throughout Finland.
OP-Public Services Real Estate Fund is a special investment fund that focuses on the construction and ownership of social properties. It includes both small and large properties: daycare centres, nursing and service homes, and various public administration properties. The fund, which comprises a total of 49 properties, includes around ten Hoivarakentajat log daycare centres and service homes.
The properties in the OP-Public Services Real Estate Fund have in common that they are long-term investments with stable rental income. Therefore, the properties are required to be sustainable and energy efficient, among other things. The fund seeks tenants that are established, socially responsible, and committed to long-term leases in the public and private social and health care sectors.
The advantages of log buildings: durability, energy efficiency, and domestic origin
The OP Group places high demands on investment properties and their builders. The cooperation with Hoivarakentajat, which began in 2018, has proven fruitful for both parties. Well-built log buildings are desirable investment properties that are safe and have a positive environmental impact. In addition, their owner, OP-Public Services Real Estate Fund, is a sought-after landlord.
The log buildings constructed by Hoivarakentajat from domestic wood are modern, energy-efficient, and sensory-friendly. Future tenants are carefully selected and participate in the design of the buildings. Single-material log buildings are structurally safe, use renewable energy, and require virtually no maintenance. In addition to good space planning and soothing log walls, tenants find the buildings attractive due to their good indoor air quality and acoustics.
– We select our construction partners carefully and supervise the construction of new properties ourselves, says Anni Lakanen, portfolio manager at OP-Public Services Real Estate Fund.
– This allows us to ensure the quality of construction and, if necessary, influence the choices made during the construction process. From the fund's perspective, we believe that log is a sensible building material, especially for care and daycare facilities, she continues.
Satisfied tenants and users are important to investors
When the goal is long-term investments, tenant satisfaction is important. Space planning carried out in collaboration with users ensures the functionality of log service homes and daycare centres, and a controlled construction process helps to minimise the number of adjustments and warranty repairs required after completion.
– We have already built around twenty log buildings with Hoivarakentajat. All of them have been completed as agreed with almost zero defects, so the need for warranty repairs has been marginal. The quality is high, as even after years of heavy use in daycare centres and nursing homes, there are hardly any signs of wear and tear. Our tenants have been able to focus on their own business, says Kari Kangasmaa, Construction Manager at OP Real Estate Investment.
Strengths include expertise in log construction, environmental goals, and a people-oriented approach
For the OP-Public Services Real Estate Fund, reducing the carbon dioxide emissions of buildings is both a starting point and a goal. That is why Hoivarakentajat's energy-efficient log buildings, which utilise renewable energy, are a perfect fit for the fund's investment portfolio.
Domestic wood, which binds carbon, is an excellent and safe building material, especially for care homes and daycare centres. As Hoivarakentajat specialises specifically in the construction of log care homes and daycare centres, its design and construction management is top-notch.
– The expertise and responsible operations of the construction company are important to us. Cooperation with Hoivarakentajat has been smooth from the start, and the buildings have always been ready for handover. The lines of communication are always open, the construction site processes are clear, and cooperation is straightforward. Our partnership is people-oriented, where issues are immediately brought to the table to be resolved together. When people on both sides of the table are approachable, things run smoothly. That's important, Kari Kangasmaa sums up.
