Nordic private assets management and investment company CapMan Real Estate has closed CapMan Nordic Real Estate III fund (the Fund) with €313 million in equity commitments from Nordic, European, and North American institutional investors.
CMNRE III succeeds CapMan’s two earlier Nordic value-add funds raised in 2013 and 2017. CapMan said it believes that the fund will achieve its target size of MEUR 500 before the year end, which would make it the largest fund in CapMan’s operating history to date. With leverage, the gross investment capacity of the Fund exceeds EUR 1.2 billion.
“The quick fundraising process clearly shows the strong interest from our investors towards our proven value-add strategy and also demonstrates their trust in our strong local team operating in Helsinki, Stockholm, Copenhagen and Oslo. The fund’s investor base is distinctly international, with approx. 70% of commitments so far coming from outside the Nordic countries. We are grateful for the continued co-operation with the investors who have now worked with us in multiple funds and are excited to have new investors on board. We look forward to establishing long-term relationships with them all,” said Mika Matikainen, Managing Partner of CapMan Real Estate.
In line with its predecessor funds, CMNRE III invests mainly in transitional offices and select residential strategies in capital cities as well as in other major growth centres in Sweden, Finland, Denmark and Norway. The fund may also invest selectively in other property sectors supported by prevailing megatrends.
“The Covid 19 pandemic and related uncertainty has sparked a debate regarding the demand for office space as many industries and work practices are in transformation. In our experience, the demand for modern and flexible office space has remained high especially in central locations where tenants value high quality and versatile solutions. Simultaneously, there is demand for the refurbishment and transformation of older attractively located office stock to comply with requirements for other types of use, e.g. schools and public services, which is also a focus area for our fund,” Matikainen continued.
“Our Real Estate portfolio has continued performing well and the team has completed several successful transactions during the current year despite a challenging market. The fund being raised now is set to become the largest in CapMan’s history. I am confident that our third pan-Nordic value-add real estate fund will build on the successful track record of the team,” commented Joakim Frimodig, CapMan’s CEO.
CapMan’s Real Estate team comprises over 40 real estate professionals in Helsinki, Stockholm, Copenhagen and Oslo. CapMan Real Estate currently manages a total of EUR 2.8 billion in real estate assets.