Brunswick Real Estate Capital has announced the first closing of its second senior debt fund in the Nordics to the tune of SEK 2.6 bn (€267 mln), enabling the firm to reach over SEK 4 bn (€410 mln) under management.
The main investors include some of the region's largest institutions. According to Brunswick, the first close reinforces real estate debt as an asset class as well as continuing investor demand for Nordic commercial real estate exposure.
'We are very pleased to see the support and trust among our investors for our second debt fund. With our management team’s vast experience of the Nordic property market and access to an increasingly strong deal flow we’ve got a solid foothold in the market of private debt lending,' commented Louise Richnau, CEO and partner of Brunswick Real Estate Capital.
Brunswick Real Estate Capital - the credit arm of BRE - closed the first fund focused solely on Nordic real estate debt as an asset class in March of last year. The first fund has since been fully invested. For the second fund, BRE has sought funding from existing sources of capital including Norway’s largest life insurer Kommunal Landspensjonskasse (KLP) and Swedish PRI Pensionsgaranti. In addition, new investment has come from the leading Swedish insurance and pension savings company Folksam.
Brunswick Real Estate Capital II is an unlevered closed-ended real estate debt fund offering senior secured lending in Sweden, primarily in the range of SEK 200-600 mln per loan with a term of up to 10 years.
'Demand for Nordic real estate remains high and with macro issues such as the Brexit vote and the US elections creating uncertainty in other markets, we believe investors will continue to be attracted to safe havens like the Nordics,' added Richnau. 'This, coupled with the fact that lending remains restrictive from traditional sources of capital, were the main drivers behind our creation of the second fund.'
