CapMan establishes a new pan-Nordic real estate fund, CapMan Nordic Property Income Fund ("CMNPI"), which is CapMan's first open-ended real estate fund with a non-UCITS structure. It will focus on stable income-generating properties in the largest and most liquid Nordic cities with solid long-term growth fundamentals. In line with the recently announced second pan-Nordic value-add fund, CapMan Nordic Real Estate II, the CMNPI fund targets mainly offices and necessity-driven retail assets, but it also will invest in other real estate sectors providing stable and predictable income, such as logistics properties.
The fund has a strong pipeline of investment opportunities and expects to make its first acquisitions during 2017. The fund has no pre-set target size but aims to accumulate over €200m of equity during the first two years of its operations.
"In the prevailing low-interest rate environment there is an immense demand for income-producing real estate instruments that also provide liquidity. During the pre-marketing, the fund has received strong interest from prospective investors. CapMan Nordic Property Income Fund targets stable returns by diversifying its portfolio across the Nordic growth cities. We typically target properties with long leases with strong anchor tenants or expect the properties to have a well-diversified tenant base," says Mika Matikainen, Managing Partner of CapMan Real Estate.
"CapMan Nordic Property Income Fund is CapMan's first open-ended fund. Our target is to offer more flexible investment products to our clients and to be able to serve an ever-wider group of investors. CapMan's new open-ended real estate fund is an example of a product that is well-suited for many different investor groups. CapMan Real Estate has a unique platform with a strong experience and track record in the Nordics, which will be instrumental for the success of the new fund," says Joakim Frimodig, CEO of CapMan Plc.
