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Nordic-Focused Private Equity Real Estate Fund Managers – March 2013

by Carla Henry

  • 22 Mar 2013
  • RE

Nordic-focused funds that have closed in the last 10 years have raised an aggregate €7.6bn in capital commitments, with €6.3bn of this total secured between 2007 and 2013. Preqin data shows that, as of March 2013, there were 11 Nordic-focused funds on the road, seeking to raise an aggregate €3.1bn in capital commitments. Of these funds, three have a focus on assets in Sweden and are seeking to raise an aggregate €1.2bn in capital, compared to one fund with a focus on Denmark with a target size of €300mn. Norway and Finland are targeted by one fund each and these funds are each seeking to raise €200mn in total capital. There are five Pan-Nordic funds in market, hoping to garner a total of €1.3bn in capital from investors.

Fundraising for Nordic-focused funds has declined steadily from 2007 to 2012. In 2012, just four funds closed, garnering €1.2bn in capital. This was significantly lower than 2007, when 11 funds closed, raising an aggregate €2.1bn in capital. Seven funds reached a final close in 2009, securing a total of €900mn in capital, whereas four funds closed in 2010, raising €300mn. Only two Nordic-focused funds closed in 2011, with commitments totalling €200mn.

Currently, the largest real estate fund in market with a focus on the Nordic region is Cornerstone Nordic Social Infrastructure Property Fund. The fund has a target size of €500mn and is utilizing a core strategy to invest in public real estate assets let on long-term inflation-linked leases to government or quasi-government tenants. Niam Nordic Core-Plus Fund has a target size of €300mn and is seeking to acquire office, residential and retail properties in Denmark, Finland, Norway and Sweden. Another large Nordic-focused fund currently on the road is Core Bolig Danmark, a vehicle that invests in residential properties located in Denmark, primarily Copenhagen, and has a target size of DKK 2,000mn.

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