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Nordic-Focused Real Estate Fundraising – June 2014

by Jack Jackson

  • 05 Jun 2014
  • RE

Preqin’s Real Estate Online service shows that there are 93 private real estate fund managers that have raised or are raising funds investing in the Nordic region, with 33 of these real estate firms managing solely Nordic-focused property funds. In the last 10 years, Nordic-focused real estate funds have raised an aggregate €7bn in capital commitments, with €6.4bn raised since 2007.

Nordic-focused real estate fundraising has endured a slow start to 2014, with just one fund closed, raising €66mn. However, there are currently eight funds in market that are targeting the region, looking to raise an aggregate of €1.8bn from investors. These could help continue the Nordic fundraising trend of the last few years, when larger amounts of capital were raised. In 2012, five Nordic-focused funds closed on an aggregate €1.4bn, with seven funds closed in 2013 attracting an aggregate €1bn in investor capital.

Of the current funds in market that are targeting the region, pan-Nordic value added vehicles are the most common fund type currently marketed by fund managers, with three funds targeting €0.9bn. Sweden, Norway and Finland are favoured by fund managers raising country-specific vehicles. These funds are seeking €0.9bn in capital through five vehicles. At the lower end of the risk/return spectrum, there are currently four core and core-plus vehicles targeting a total capital of €0.7bn. Nordic opportunistic funds seem to be less favoured by fund managers, with just one fund in market seeking €0.2bn. 

The largest fund in market targeting the region is NREP Nordic Strategies Fund, a pan-Nordic value added vehicle targeting €325mn. The fund will invest in logistics, residential and retail properties in primary Nordic cities.

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