CapMan Plc has established its fourth private equity real estate fund in the Nordic countries. The investment capacity of CapMan Nordic Real Estate (CMNRE) is approximately €125 million after the first closing that was held on 6 March 2013.
CMNRE invests mainly in properties with value-add potential that can be realized through active management. The focus of the fund is in office and retail properties located in the Nordic countries. The positive impact of the increase in management fees as a result of the establishment of the fund is in line with previously provided guidance.
Together with CapMan and the team, five institutional investors from Finland and the United States have committed a total of €50.1 million to CMNRE at the first closing of the fund. CapMan's and the investment team's own investment in the fund is €8.1 million. Investments made by CMNRE are financed with an average of 50-60% debt financing, providing a current investment capacity of approximately €125 million. Fundraising for the fund continues and CapMan expects to achieve the final closing for the fund in 2014 at the latest.
The investment focus of CMNRE is office and retail properties with opportunities in growth centers in the Nordic countries. The objective of the CMNRE fund is to actively manage and add value to properties over a period of 3-5 years and then sell. CapMan Real Estate's Nordic team consists of 20 investment and asset management professionals in Helsinki and Stockholm. The fund's first investment is an office building in Sollentuna in the Greater Stockholm area with Pfizer and BMW as the main tenants.
"The Nordic region is viewed as an attractive location for real estate investments due to its favorable macroeconomic environment in comparison to Continental and Southern Europe. There is international demand for Nordic private equity real estate investments and we are pleased to be able to offer investors this opportunity. Our strong local team, which we are looking to further strengthen especially in Sweden, is well positioned to execute CMNRE's investment strategy," says Mika Matikainen, Senior Partner and Head of CapMan Real Estate.
CMNRE generates management fees and carry according to private equity real estate fund standards.