Nordic property investor Capman has made the first investment for its new Social Real Estate Fund (CMSRE) which is still in a fundraising phase targeting equity of €500 mln.
The vehicle has bought two daycare and one school asset in central Helsinki, Finland, from HGR Property Partners. Two of the buildings house the French Jules Verne kindergarten and school and one, once refurbished, will house daycare facilities operated by the City of Helsinki. All three buildings are under long-term leases.
Two buildings were recently refurbished to modern standards and are under a long-term lease with the French Jules Verne kindergarten and school while the third building is designated for day care use by the City of Helsinki and is currently undergoing a thorough refurbishment, which is expected to be completed in 2025. The buildings will accommodate some 350 children living in the surrounding areas.
CMSRE will have a total investment capacity of nearly €1 bn over the coming years. The fund is looking to build a well-diversified portfolio of social real estate properties across Sweden, Finland, Denmark and Norway.
CMSRE invests in properties that are used for providing essential public services in sectors such as health care, education, civic services and emergency. The fund is classified as an Article 8 financial product under the Sustainable Finance Disclosure Regulation (EU). It is a German special investment fund and it is primarily targeted to German institutional investors. Hansainvest Hanseatische Investment-Gesellschaft acts as the alternative investment fund manager of the fund. CapMan Real Estate acts as advisor for the fund.
'The Nordic countries represent an attractive investment market where the volume of social real estate investments can be seen increasing rapidly. Currently, we continue fundraising while actively looking for investment opportunities across the Nordic countries which all present unique prospects within social real estate,' said Mika Matikainen, managing partner and head of CapMan Real Estate.
CapMan Real Estate manages €4.2 bn in real estate assets and the Real Estate Team comprises over 70 real estate professionals located in Helsinki, Jyväskylä, Stockholm, Copenhagen, Oslo and London.
