Nordic asset manager CapMan has announced that it has raised €300 mln of initial equity from international investors at the first close of a new Nordic open-ended residential real estate fund.
The fund is targeting €1 bn of equity by 2023, building on what CapMan described as ‘tremendous investor demand’ for rental residential assets with a Nordic mandate.
‘We know this market very well and have good relationships with property owners and developers and believe that an active and local value-add management approach can add significantly to the core return profile,’ said Mika Matikainen, managing partner and head of CapMan Real Estate.
‘Our vast experience and track record in the Nordic residential sector should enable us to significantly grow the Fund over the coming years, and we already have a substantial pipeline of new investment opportunities,’ commented Torsten Bjerregaard, managing partner of CapMan Real Estate.
First investment for the Fund
Simultaneously with the first closing, the Fund has signed an agreement to acquire a seed portfolio consisting of 29 modern rental residential properties with 1,854 middle-income apartments with a combined 88,279 m2 net leasable area in the Helsinki Metropolitan Area and surrounding commuter towns. The vendor is Icecapital.
The properties have been built between 2016 and 2021 and are in very good condition requiring minimal capex investments over the next 10 years.
‘The properties are attractively located in growth centres in and around the Helsinki Metropolitan Area with good access to commuter connections. The relatively small unit sizes of the portfolio are consistent with the ongoing demographic trends that support a growing number of smaller households and preference to rent instead of owning a home,’ said Juhani Erke, head of CapMan Real Estate Finland.
CapMan’s Real Estate team comprises over 40 real estate professionals in Helsinki, Stockholm, Copenhagen, Oslo and London. CapMan Real Estate currently manages a total of €3.6 bn in real estate assets.
