AREIM attracts Allianz Real Estate

The firm originally launched as the Nordic investment partner to global heavyweights The Blackstone Group and ING Real Estate Investment Management, has held a second close for its AREIM Fund II thanks to a €75m commitment from German insurance giant Allianz.

Andersson Real Estate Investment Management (AREIM), the Stockholm-based private equity real estate firm currently out raising a value-add Sweden fund, has secured another giant limited partner in the shape of Allianz Real Estate.

The firm, which was formed in 2003 primarily to be the Nordic investment partner of groups including The Blackstone Group and ING Real Estate Investment Management, has held a second close for AREIM Fund II following a €75 million commitment by the German insurance company, PERE has learned.

AREIM can now boast an investor line-up for its new fund consisting of the Government of Singapore Investment Corporation (GIC) Algemene Pensioen Groep (APG), AP4, the Fourth Swedish National Pension Fund, and Allianz, as it works towards a final close in 2013. The fund is capped at SEK 3billion.

Leif Andersson, chief executive officer of AREIM, said: “We are very proud to now have a committed capital base of more than SEK 2 billion in Fund II, proving the trust that international institutional investors have in us. We have ongoing discussions with additional interested parties and expect to expand our investor base further in the near future.”

Similar to its predecessor, AREIM Fund II will pursue value-added investments in the form of office repositioning, retail investments and residential development projects in Sweden with a focus on Stockholm. The fund is an eight-year vehicle with a three-year investment horizon.

The fund’s strategy is much in line with AREIM’s first fund which was launched in the challenging vintage period of late 2007, immediately prior to the start of the global financial crisis. The SEK2.1 billion fund is now fully invested and AREIM said it was on track to deliver its expected value-added returns (typically around the 15 percent IRR mark). The fund has been invested in 30 properties across Sweden, 60 percent of which are offices, 30 percent in retail and remainder in residential properties.

No placement agent was used for AREIM’s latest capital raising effort.