CapMan creates pan-Nordic open-ended fund

CMNPI will be CapMan's first open-ended real estate fund with a non-UCITS structure.

The fund will focus on stable income generating properties in the largest and most liquid Nordic cities with solid long-term growth fundamentals, the fund manager said.

'CapMan Nordic Property Income Fund is CapMan's first open-ended fund,' commented Joakim Frimodig, Capman's CEO. 'Our target is to offer more flexible investment products to our clients, and to be able to serve an ever-wider group of investors. CapMan's new open-ended real estate fund is an example of a product that is well-suited for many different investor groups.'

In line with the recently announced second pan-Nordic value-add fund, CapMan Nordic Real Estate II, the CMNPI fund targets mainly offices and necessity-driven retail assets, but it also will invest in other real estate sectors providing 'stable and predictable income', according to CapMan, such as logistics properties.

The fund expects to make its first acquisitions during 2017 after establishing its significant pipeline of investment opportunities. It has no pre-set target size, but aims to accumulate over €200 mln of equity during the first two years of its operations.

'In the prevailing low interest rate environment there is an immense demand for income-producing real estate instruments that also provide liquidity,' said Mika Matikainen, managing partner of CapMan Real Estate. 'During the pre-marketing the fund has received strong interest from prospective investors.We typically target properties with long leases with strong anchor tenants or expect the properties to have a well-diversified tenant base.'

'CapMan Real Estate has a unique platform with a strong experience and track record in the Nordics, which will be instrumental for the success of the new fund,' concluded Frimodig.

Established in 2005, CapMan currently has over €1.7 bn of assets under management.