Nordic real estate investor NREP said on Wednesday that it has raised €608 mln in additional funding for NREP Income+ (NIP), its open-ended fund aimed at long-term investments into modern logistics facilities, middle-income residential, offices and care homes.
The second closing has grown the fund by 50%, taking the total funds raised to €1.6 bn, with two thirds of commitments comprising top-ups from existing investors, with the remainder from new institutions.
As the largest ever core-plus Nordic fund, NIP provides the global institutional investor community with access to a high quality and diversified portfolio delivering a robust income profile. To date, the fund has committed almost €1 bn to 20 deals.
Most recently, NREP purchased the architecturally and culturally significant building ‘Leipätehdas’ in Helsinki. With 13,500 m2 of leasable area, the classic red-brick property which dates back to 1923 has undergone a modern upgrade and now serves as a flexible office space, accommodating companies in the field of technology and culture. Tenants include Red Bull, Helsinki Dance Institute and Cultural Centre Caisa.
In Odense, Denmark, NREP has acquired a 46,000 m2 residential portfolio of 567 under-managed homes, distributed across 23 properties. The portfolio will undergo a programme of improvements including energy retrofits, kitchen upgrades, improved landscaping and biodiversity and a tasteful re-design of shared atrium areas.
Claus Mathisen, CEO of NREP, said: ‘Supported by enduring consumer trends and demographic developments, NIP allows us to extend our long-term approach even further to generate more income-orientated value.’
NIP is backed by a globally diversified institutional investor base which predominantly comprises pension funds and insurance companies, a number of whom are advised by CBRE Investment Management’s Indirect Private Real Estate Team.
Philippe Brand, portfolio manager at CBRE Investment Management, said: ‘In our view, this investment into the NIP Fund provides our investors with access to a high quality, large and well-diversified portfolio in our preferred sectors: logistics, residential and healthcare.’
NREP is targeting raising a further €500 to €750 mln by the end of 2022 to match NIP’s growing investment pipeline. This would take the total funds raised for the strategy to €2.5 bn.
