Nordic Real Estate Partners (NREP) has confirmed it has established a €900m fund to invest in underserved real estate segments in the Nordics.
Last month, IPE Real Assets reported that the fund manager was raising the amount for NREP Nordic Strategies Fund III.
NREP said the fund, which is now closed at €900m, received interests from investors totalling more than double the target amount.
Rickard Dahlberg, the CIO of NREP, said: Based on our team’s operational capacity we capped the fund’s size to €900m, compared to a total investor interest of approximately €2.3bn.”
The fund manager raised €600m for NREP Nordic Strategies Fund II a couple of years ago.
The investors in the fund are mainly pension funds, insurance companies and sovereign wealth funds from the Nordics, Europe, US and East Asia.
Fund III will focus on providing real estate products to select underserved groups of users, including students, young professionals needing flexible affordable living, young families, active seniors seeking connectedness and seniors in need of more assisted living.
The fund will also service the growing need for efficient logistics buildings around the Nordic capitals and main infrastructure corridors.
NREP said it has already secured investments using 25% of the fund.
In addition to single property investments, NREP said it is also working in close collaboration with state and municipal partners on strategic mixed-use projects.