Nordic private equity real estate investor Slättö has raised an initial SEK2.5bn (€220m) for its third value-add fund.

The fund manager said the first close of Slättö Value Add III, which included co-investment capital, represents 50% of the fund’s target size within six months of its launch.

Slättö Value Add III was backed by a diverse group of both new and existing investors, including pension funds, foundations and asset managers from Europe and the US, Slättö said.

Jonas Andersson, deputy managing partner at Slättö, said: “We are thrilled to have achieved a successful first close, especially in a challenging fundraising environment. Private equity fundraising volumes for the first nine months of this year have been at their lowest levels in over a decade.

“This successful first close reflects our robust track record and confidence in what we believe to be the most compelling acquisition window in a decade. The combination of a repriced Nordic real estate market, motivated sellers and a limited buyer universe positions Slättö Value Add III to become one of the most successful vintages in recent years.”

Last month, Slättö acquired the first four properties as part of a light-industrial roll-up strategy within its newly established Slättö Value Add III fund. The transactions represent the second investment made by Slättö’s new fund in the value-add series.

Slättö Value Add III aims to build “a sizeable Nordic light-industrial portfolio” through an efficient acquisition process and tenant-focused asset management, the company said at the time.

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