Interest from US institutional investors has led to Nordic Real Estate Partners’ (NREP) latest fund being oversubscribed.
Capital raising for the pan-regional, value-added Nordic Strategies Fund has been capped at €400m, with 20% of the money derived from North American investors. Had it not been capped, US capital would have accounted for 35% of the fund.
NREP CEO Mikkel Bülow-Lehnsby told IP Real Estate that a wider range of US investors wanted to join the fund alongside its regular European investors.
Earlier this year, it was revealed that recently merged Danish pension funds DIP and JØP were among investors in the first close of the fund. At that time, Nordic Strategies Fund was targeting a total capital raise of €325m.
Bülow-Lehnsby said he had observed growing interest from US investors in more nuanced, “niche” European real estate strategies that focus outside the UK, Germany and CBD office markets.
The new fund has a particular focus on modern logistics, “necessity retail” and select housing markets in Nordic countries.
NREP said these markets had been identified as those “less dependent on capital market cycles” and home to opportunities to enhance the value of income-producing assets.
NREP has been particularly active in the Copenhagen residential market where it recently acquired a large portfolio from PensionDanmark.
The Nordic Strategies Fund is expected to complete its final close today.