Property investor Nordica has invested SEK400m (€35m) in Vendus Sweden, making it the majority shareholder in the real estate company that focuses on grocery retail assets.
Vendus invests in assets with stable cash flows across Sweden and has created a platform of 51 properties, with around 77% of rental income derived from key players in the grocery sector, with an asset value of SEK2.3bn.
Vendus said it is raising equity to capitalise on “attractive investment opportunities” and “to establish an efficient capital structure” enabling a continued growth journey with the ambition to grow the property value to at least SEK6bn within a three-year period.
In addition to the new share issue to special situations property investor Nordika, Vendus intends to raise up to an additional SEK450m from existing investors via a rights issue. The founders, management and current main shareholder MEL & ME will commit to invest at least SEK110m out of the additional SEK450m rights issue target providing Vendus with up to SEK850m in new equity.
Vendus said it will use the new cash to undergo a structural change, transforming into a streamlined real estate company with an in-house organisation, enhancing its ability to grow and attract capital in future capital raisings.
As part of this, Vendus will acquire a management organisation from Real Value Management Nordic, which has previously provided property management and transaction services to Vendus on a consultancy basis.
Gabriel Cronstedt, COO and founder of Nordika, said: “We are pleased to acquire a non-cyclical platform in a defensive segment. The market for grocery-backed real estate is very attractive as these assets offer many services in addition to groceries and are very important in the local communities. We look forward to growing this platform in the Nordics.”
The investment was made by Nordika IV. The fund already has a platform in the light industrial and warehouse space and is listed on the Stockholm stock exchange. Cronstedt, added that “we usually target mid-teen net returns”.
Nordika invests mainly in commercial real estate in Sweden, Finland and Norway, with its funds backed by an investment base of global institutional investors.
Since its inception in 2011, Nordika has acquired and managed investments with a value exceeding €2.5bn through direct and indirect ownership.
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