CapMan working on Finnish housing fund

The Nordic asset manager reveals the plan during a 2009 financial update

CapMan, the Helsinki-based alternative asset manager, has plans for a residential fund in Finland.

Presenting its 2009 financial update recently, the company said work had begun on evaluating the potential for establishing a private equity real estate fund to invest in the Finnish housing market.

It also highlighted how fundraising took place for a number of vehicles in 2009 including CapMan Hotels RE as well as a private equity fund called CapMan Buyout IX.

The hotel fund raised €332.5 million and has an investment capacity of €872.5 million, with leverage, it said.

In the real estate sector, CapMan said the debt market crisis has depressed the volume of real estate transactions.

The number of foreign players in Finland, in particular, had fallen significantly as a result, it added.

In the update, the firm said: “We anticipate transaction volumes to remain low, but expect the number of deals to increase in 2010. The use of equity for financing real estate transactions has increased. Demand for prime real estate remains good.”

CapMan has a total of €3.5 billion under management. Around 80 percent of its capital has been raised from Finnish and international pension funds, insurance companies and funds of funds.