CapMan, the Stockholm-headquartered private equity firm, has held a first close on its second private equity real estate fund as it continues its push into the property sector.
CapMan RE II has raised €69 million so far from seven investors, giving it an investment capacity of approximately €275 million with leverage. In a statement, the firm noted that the vehicle’s total investment capacity will reach €600 million upon final closing, implying an equity target of €150 million.
The vehicle will primarily focus on property development in Finland. Though CapMan will invest across sectors, the new fund will principally target investments in commercial properties and logistics projects. CapMan’s first real estate fund, which had a total investment capacity of €500 million and closed in June 2005, invested in commercial properties in the Helsinki metropolitan area.
“CapMan RE II complements the investment focus of our earlier fund…and expands our operations to the whole of Finland,” said Markku Hietala, head of CapMan Real Estate, in a statement. “Until now there has not been a private equity fund in Finland that has focus on property development targets.”
Earlier this year, CapMan’s first real estate fund acquired the Malmin Nova shopping center in northern Helsinki and two separate office and warehouse buildings totaling approximately 16,500 square meters of space. The acquisitions brought the fund’s total portfolio, which includes core, value-added and opportunistic investments, to 22 assets.
As part of its push into the real estate sector last year, CapMan established a new subsidiary, CapMan Real Estate Oy, to act as the fund’s management company. CapMan has an 80 percent stake in the subsidiary with the balance held by real estate consulting company Corintium Oy. Last year, the firm also acquired Realprojekti Oy, a real estate development company, to advise CapMan on its property activities.
CapMan manages a total of 18 private equity funds including buyout, mezzanine, technology, life science and real estate vehicles, with total capital of approximately €2.3 billion.