Nordic real estate investor NREP has raised €900m for its new, semi open-ended fund to invest in middle-income residentials, modern logistics facilities and social infrastructure across the Nordics.
”By now, NREP has already deployed two thirds of the fund’s capital into investments representing all Nordic countries. The ‘perpetual’ fund allows for very long-term investments and will leverage NREP’s operating capabilities to focus on underserved segments such as middle-income residentials, modern logistics and care homes,” said the company in a statement.
“Supported by enduring consumer trends and demographic developments, we can now extend our long-term approach even further to generate more income-orientated value. The new fund reflects a demand from many of our investors and it matches the investment opportunities we meet in the market. Despite a different and lower risk profile in this fund, our ambition to make real estate greener and more customer friendly remains important to every investment we make,” said Claus Mathisen, CEO of NREP.
The fund’s largest acquisition so far is one of the Nordic region’s most sophisticated distribution centers, a 27-metre clearance high-bay logistics building measuring 84,800 m2 and let on a long-term agreement with the grocery retailer Coop. Located close to Oslo, the property is fully automated and holds further opportunities to be expanded.
Other investments include two care homes in the Stockholm region with a sustainability profile, one of which with a preschool on the ground floor.
NREP’s investors are institutional and predominantly pension funds. Investors backing the new fund include Novo Holdings, the investment company of The Novo Nordisk Foundation, one of the world’s largest charitable foundations, as well as Dutch pension investor Bouwinvest.