eQ Asset Management Ltd, part of eQ -group, and Finnreit Fund Management Company Ltd have today agreed that eQ Asset Management Ltd will subscribe 50% of Finnreit Fund Management Company Ltd shares in a share issue directed to eQ Asset Management Ltd. eQ Asset Management also holds an option to purchase the entire share capital of the company.
As a result of this agreement, completely new type of property fund, non-ucits fund eQ Care will be launched during the early autumn. The fund is a non-ucits fund and supervised by Finnish Financial Supervisory Authority. eQ Care invests directly in care properties which form a diversified portfolio for the fund. According to its rules, the fund distributes as a profit distribution at least 75% of its cash flow-based profit to the fund's investors. Thus, profit received from the properties can be distributed directly to the investors tax neutrally. In addition, investors of the fund will benefit from value increase of the properties in the long-term. Experienced team of Finnreit Fund Management Company Ltd is responsible for the asset management function of the fund.
Janne Larma, CEO of eQ Plc comments:
'eQ Care fund complements eQ's current fund offering and the fund will correspond to increasing market demand on high quality care properties. The fund is expected to provide attractive return as the fund is entitled to use moderate leverage in its investments and as the rental agreements in care sector are long. The fund is well suited for private and institutional investors.'