Great to see them moving forward with this! Since they don’t report monthly updates anymore, we don’t know if individual properties have been sold to finance this, or if it falls under a new debt package. Titanium is unlikely to report on individual asset sales, only on portfolio deals.
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Judging by Hoiva’s balance sheet, H1/2024 redemptions were 36 million. The December 2025 real estate transaction was 35 million. So this latter payment installment will likely also be largely covered by the aforementioned December sales.
In last June’s extensive report, the range for H1/2024 redemptions was estimated at 30-50 million. If the pace relative to the report’s estimates continues the same, the remaining outstanding redemptions for H2/2024 (10 million) plus the year 2025 (35 million) would total 45 million.
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From what I’ve seen regarding redemption payments for other open-ended property funds, it seems that the common approach has been to use only part of the sales proceeds to pay for redemptions and use the rest to pay down debt.
Of course, if leverage is even slightly negative and the loan-to-value ratio is nearing its limits, this is exactly what should be done.
Titanium Care (Hoiva) is in a different situation. The cash flow-based net yield is well above the interest rate level; the interest rate is likely between 3.5 and 4.0 percent at the moment, and the rates are probably almost entirely hedged.
I wouldn’t consider it completely impossible for the remaining redemptions to be paid mainly with debt, without any further property sales being made to handle the matter. The credit limit would likely allow for this in itself, but the matter is probably not quite that straightforward.
If redemptions were indeed to be paid with debt in a situation where leverage is at a reasonably healthy level, it would naturally mean a moderate increase in the NAV’s cash flow-based yield from its current level. This certainly wouldn’t hurt when considering the fund’s new sales.
One can’t entirely rule out a slight increase in property values in the near future either. Which would, of course, ease the situation in many ways. Even half a percent would show up quite nicely in the figures.
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I suspect this is quite outdated information. If a comprehensive report were produced now, the figures would likely be significantly higher. In any case, it seems clear that Titanium is trying to use every other possible means to pay for the redemptions rather than selling its best assets. It is likely not an easy task.
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Titanium has updated its funds’ rules regarding liquidity management. Going forward, the liquidity of the real estate funds will be managed in the following ways.
The following liquidity management tools have been selected for the funds:
Titanium Asunto, Titanium Baltia Kiinteistö and Titanium Hoivakiinteistö: redemption restrictions, extension of the notice period and anti-dilution levy. The changes have been made to Section 13 of the rules.
In addition to these, it is still possible that under certain circumstances, both subscriptions and redemptions may be suspended.
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Subscription fees, annual management fees, transaction fees (when properties are bought/sold within the real estate portfolio), and redemption fees are already in use. In addition to these, there is now a potential dilution levy of 0–20%. In a good market environment, the dilution levy is likely 0% or close to it, but how much will it be in a poor market environment, now or in the future? In some scenarios, for example, 5%, and the maximum is indeed 20%.
Based on this information, the recommended investment horizon for someone investing in the fund should probably be at least 7–10 years.
It will be interesting to see how this works in practice. If you place a redemption order, will the customer be given a prior indication of the likely dilution levy percentage (e.g., a range of 3–5%) before the money hits the bank account, allowing them to confirm or cancel the order at the last minute if the levy seems too high from the customer’s perspective this year? Or will the money just appear in the bank account without any prior notification, with the customer having no idea of the levy’s size when placing the redemption order?
A fund investor should receive some kind of advance information. It can’t really be the case that either 100,000 euros or 80,000 euros lands in your bank account, and you only find out which it is when the redemption order can no longer be canceled. Otherwise, four years’ worth of fund returns, for instance, could be wiped out in one go during redemption.
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12 posts were merged into the thread: Financial Sector as an Investment
Asunto and Hoiva have made new financing agreements.
What a coincidence, they hit the interest rate bottoms! Again!
Hoiva’s previous interest rate agreement was 2.5% + margin. As I understand it.
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It’s good that the financing can be renewed. According to the press release, however, the housing fund’s financing package was taken from Oma Säästöpankki (the care fund’s financing would have been too big a bite for OmaSP to chew). Previously, OmaSP has had a reputation for usually being the most expensive option in terms of margin. The situation may have changed, and I don’t know if both private and corporate customers have an expensive list price. It’s a matter of negotiation, of course. However, for private customers, the margin from Nordea could have been 0.8% and through Oma Säästöpankki 1.5%. Oma Säästöpankki has also financed such projects in smaller localities where other banks do not grant loans. Their customers also include price-insensitive consumer customers. The point of my comment: I don’t believe the loan margin was very favorable. The margin, interest rate hedges, and their prices were not disclosed.
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Agreed. The new financing is very likely more expensive than the old. From what source was the previous financing?
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Titanium pays off the outstanding redemptions for Asunto: Ilmoitus Erikoissijoitusrahasto Titanium Asunnon osuudenomistajille 30.3.2026 - Titanium OyjTitanium Oyj
I assume that properties have been sold and a new financing package makes this possible. It’s great that they can meet their obligations! I would also like to remind you that Asunto’s significance to Titanium’s figures is marginal, as its size is small and Hoiva accounts for over a third of the entire Asunto fund.
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By the way, Titanium will be releasing Q1 reports for key funds next week or the week after. In the healthcare sector, the point of interest is, of course, whether individual properties have been sold (these might not be announced separately). In addition, other information is naturally of interest, although there should be no surprises in those, by all accounts.
Regarding housing, it’s interesting to see how many redemptions were in arrears. This will again provide a good indication of how much potential redemption pressure there might be in the healthcare fund.
For PE, it’s naturally interesting to see how much of this has been sold. The H2 momentum would be important to continue, and AUM should be at least 30 MEUR. It’s also interesting to see if Titanium has made changes to the portfolio composition. Earlier, Titanium has spoken like this:
Source: PE December monthly review.
Currently, enterprise software has been hit the hardest in the stock market during the SaaS-geddon, and this matter has surely been considered in portfolio management. 
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Enterprise software stocks have indeed fallen by tens of percent during the year. Certain companies have fallen much more sharply. Valuation levels have come down significantly. It will be interesting to see if the valuation level within the PE fund has remained (at least seemingly) at the previous high level or even increased further. I don’t know what companies are within the Vista fund; divestments have probably not been made at these prices. So the valuation is not based on transaction prices but on future estimates.
The video interview about real estate funds linked in the eQ thread, and the comment in the video, was indeed interesting, stating that in the Helsinki metropolitan area, public service properties can somehow be sold at reasonable prices, but not so much in the provinces. Has Titanium now been able to sell care properties outside the Helsinki metropolitan area, and at what price? The Q1 report might provide more information. Do eQ and Titanium see the market situation in the same way, or are there differences?
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