Genesta secures first close for Nordic fund on €152m

The Nordics-focused real estate investment management firm secured the capital for its second fund from four institutional investors.

Genesta, the Nordics-focused real estate investment management firm, has held a €152 million first close on its second private equity real estate fund – Genesta Nordic Real Estate Fund II.

The firm secured the commitments from four institutional investors and additional capital is expected to be secured during the course of the month of June, according to a statement from the firm.

Genesta is looking to secure a total of around €350 million to 400 million, which would make the fund roughly twice the size of its predecessor – Genesta Nordic Baltic Real Estate – which was closed on €176 million in 2007 having garnered support from UK and Dutch pension funds and funds of funds.

The fund will provide investors with exposure to office, retail and logistics property investments predominantly in the Nordic cities of Stockholm, Copenhagen, Helsinki and Oslo. The firm will pursue value-add investments for the fund and will target a net return from them of 13 to 14 percent.

Genesta’s first fund outperformed the IPD Sweden Annual Property Index by 3.1 percentage points and recorded a total return of 10.8 percent in 2014.

“With the creation of the new fund, the Genesta organization will grow and be looking to recruit new people in 2015 and further out,” commented David Neil, chief executive at Genesta.

Placement agent Capra Global Partners is advising Genesta on the capital raise.

Genesta was established in 2003 as a local operating partner for large European funds managed by firms including LaSalle Investment Management, JPMorgan, Merrill Lynch and American International Group. Transacting initially on a deal by deal basis, the firm built up a sufficient track record to enter the fundraising arena in 2007.