Real estate fund manager Genesta has raised €334m at the first close of its third Nordic value-add property vehicle.
Genesta Nordic Real Estate Fund (GNRE) III, which is seeking to raise €450m in total within a year, received the commitments from eight investors from its predecessor fund, the manager said.
GNRE III targets a return of 12-14% by investing predominantly in offices in the capital city regions of the Nordics but also logistics and retail in the capital city regions and larger regional cities.
With leverage, the fund has a target real estate investment volume of about €900m.
The fund’s target deal size will range between €20 to €60m.
The fund will target assets in the range of €20 to €60m that it can renovate, expand, rebrand or change-of-use depending on location.
David Neil, CEO and founding partner of Genesta, said the GNRE III fund currently has no investments, but the manager “sees a good pipeline of opportunities”.
“We are very pleased with the strong support from our existing investor base. This is a testament to the success of the predecessor funds and our clients’ strong belief in our strategy.”
