Nordic Real Estate Partners (NREP) announced the closing of their fourth Nordic fund "NREP Logistics AB". The Fund will focus on prime logistics properties in key hub locations throughout the Nordics. The new fund launch is in line with NREP's strategy to focus on niche investment strategies in which NREP can build a strong market position. The launch marks the successful continuation of the logistics strategy that was implemented at the inception of NREP five years ago.
The Fund has been set up as a club structure with the main investors being SPP Livförsäkring represented by Storebrand Eiendom, Vattenfalls Pensionsstiftelse, a number of investors managed by Schroders Property Investment Management as well as a number of UK pension schemes represented by CBRE Investors Global Multi Manager. The Fund will have an investment capacity of approximately SEK 3.5 4.0 billion, of which SEK 900 million was invested into a seed portfolio acquired simultaneously with the closing of the Fund. The seed portfolio comprises of 160,000 m² of prime logistics properties in Sweden and Finland.
"The Fund enables us to continue our successful prime logistics strategy, which has been focused on acquiring and developing prime logistics buildings across the Nordics. We have successfully been able to deliver high quality premises at competitive rent levels to our tenants while providing our investors with stable returns and capital gains from developments. We see a great potential to continue this strategy as the market demand for modern efficient space continues to be strong," says Rickard Svensson, Partner in NREP with overall responsibility for the Fund.
"We are very pleased and grateful for our continued ability to raise capital, despite the turbulent times. It gives us confidence that our model of working with narrow and focused investment strategies, in which we can acquire expertise does not only make sense to us, but also to the investor community," says Mikkel Bülow-Lehnsby, Partner in NREP.