Nordic fund holds €148m first close, acquires first asset
Nordic Real Estate Partners announced a €148 million ($202.8 million) first closing for its Nordic Strategies Fund on May 7. The fund has an equity target of €325 million ($445.3 million).
The Nordic Strategies Fund will invest predominantly in modern logistics, necessity-anchored retail and residential in large, established, growing Nordic cities, replicating the strategies of prior NREP funds. It is intended that the fund will target investments that enable the fund to deliver an internal rate of return of 18 percent with annual dividends of 5 percent to 6 percent on the invested capital.
The first closing was held to provide capital for the fund’s first investment. It has acquired land in Copenhagen for the development of a 474,000-square-foot retail center from Danish property company Nordicom. The development is expected to have a total value upon completion of approximately DKr 1 billion