Profi Fastigheter is planning to raise SEK3bn (€280m) for its latest real estate fund, the Swedish fund manager said.
The value-add Profi V fund will target major cities in Sweden including greater Stockholm, Gothenburg and the Malmo region.
The fund will buy office, light industrial, logistics, mixed-use and social infrastructure to generate a net internal rate of return (IRR) of 13% to 14% with an equity multiple of 1.9%. It will use debt of up to 65% loan to value.
According to sources, the manager has generated a 25.2% gross IRR and a 1.9x gross multiplier, with realised returns of a 35% gross IRR and a 2.1x gross multiplier across several of its funds.