Nordic Real Estate Partners (NREP) announce the final closing of their Nordic Strategies Fund (the Fund) at the hard cap of €400 mln (versus a €325 mln initial target).
The Fund was materially over-subscribed and the investor base is composed of a diverse group of 18 institutional investors from the US and Europe, including several prominent financial institutions, endowments, public pension plans and family offices, together with the NREP Partners and employees.
The Nordic Strategies Fund is a key milestone for NREP, consolidating the firm’s investment activities into one vehicle, enabling international institutions to access the Nordic real estate market in an efficient way. The Fund invests predominantly in modern logistics, necessity-anchored retail and residential assets in large, established, growing Nordic cities, replicating the strategies of prior NREP funds.
“We are grateful for the strong investor support we have seen and remain confident that, with our focused value add investment approach, we will continue to be able to deliver strong risk adjusted returns to our investors throughout the cycle,” says Mikkel Bülow-Lehnsby, CEO and co-founder of NREP.
The Fund has undertaken 11 transactiona1, and NREP has built a robust near-term investment pipeline. The Fund’s target return is an internal rate of return of 18% with annual dividends of five to six% on the invested capital.
“We remain extremely positive about the market opportunity across our three main strategies in the Nordic region, as demonstrated by the initial transactions for the Fund and our strong investment pipeline,” says Rasmus Nørgaard, CIO and co-founder of NREP.