EXCLUSIVE: NREP hits €400m hard cap for Nordics fund

The NREP Nordic Strategies Fund set off at the start of the year with a €325 million target, but has closed oversubscribed with 18 investors from the US and Europe

Nordic Real Estate Partners (NREP) has hit a milestone in its evolution since starting out in 2005 by raising its largest fund to date. 

The Denmark-based firm has closed on its hard cap of €400 million for its value-added NREP Nordic Strategies Fund, having only launched it earlier this year with an initial target of €325 million.

NREP said the fund was “materially oversubscribed” and that the investor base consisted of 18 institutional investors from the US and Europe, including a mix of insurance groups, endowments, public pension plans and family offices, together with the NREP partners and employees. A first close was held at the end of April.

NREP started out in 2006 by raising €100 million for a multi-strategy fund. After that, however, it raised a succession of smaller sector-focused vehicles of between €10 million and €186 million until returning to a multi-strategy approach again.

It said it had executed 11 transactions for its new fund and had a “robust” investment pipeline. The strategy is to invest predominantly in modern logistics, necessity-anchored retail and residential assets in large, established, growing Nordic cities, replicating the strategies of prior NREP funds. Investors have been told the target return from the fund is 18 percent, with annual dividends of 5 percent to 6 percent on the invested capital.

The company was founded by chief executive officer Mikkel Bülow-Lehnsby and chief investment officers Rasmus Nørgaard and Rickard Dahlberg. Bülow-Lehnsby told PERE that the Nordic Strategies Fund was the fastest fundraise since setting up the firm nine years ago, calling it a “milestone.”

Lazard acted as the placement agent.