Genesta announced the first closing of its new fund – Genesta Nordic Real Estate Fund II. The fund has secured commitments of €152 mln from four institutional investors. Genesta is the first manager in the Nordics to be approved as an alternative investment fund manager (AIFM). AIFM is a legal requirement for managers of non-listed real estate funds.
As an AIFM in the real estate sector, Genesta is authorized to raise equity in all EU countries and manage non-listed real estate funds.The new fund will provide institutional investors with exposure to office, retail and logistics property investments predominantly in the capital cities Stockholm, Copenhagen, Helsinki and Oslo. The fund will pursue value add investments and targets a net return to investors of 13-14%.
Genesta is looking to secure a total of €350-400 mln of commitments, making this fund roughly twice the size of its predecessor. Capra Global Partners, the private equity capital markets advisory group, advised Genesta on the capital raise.