A Finnish hotel portfolio has been sold for approximately €800m (£600m) to Nordic asset manager CapMan.

Northern European Properties (NEPR), which invests in the Nordic and Baltic regions and Russia, sold the portfolio as it abandons Finland to invest further in Russia.

The sale of the 39-property portfolio, which brings in approximately €50m (£37.4m) a year in rent, is expected to complete this quarter.

'We are delighted to have agreed this substantial transaction which is in line with the board's previously announced strategy to optimise the value of our existing Nordic portfolio and take advantage of continuing liquidity in that market,’ said Jens Engwall, Chairman of NEPR.

Russian promises

NEPR said it believes Russia offers attractive investment opportunities.

The increase in rental values and the shift in yields should offer attractive returns for its shareholder, the company said.

The company said it would use the proceeds of the sale to selectively invest in Russia, but would move cautiously because of the current market conditions.

It said if suitable opportunities could not be found the company would return the money to shareholders.