Niam, the Stockholm-based private equity real estate firm, has held a €134 million first close for its second core-plus fund – Niam Nordic Core Plus II.
The firm began marketing the fund in February and the first close represents around 45 percent of the €300 million targeted fund size.
The fund is targeting a net IRR of 8 percent and an annual income yield of 5 percent.
Most of the capital comes from German, Dutch and Swedish pension funds and financial institutions who have previously invested with the firm.
“We are very happy with the successful first close in our new core-plus fund and appreciate all the support from our existing investors. We continue to see great income producing opportunities in real estate in our markets,” said Johan Bergman, Niam's chief executive.
The fund will specifically target office, retail and residential property investments in four Nordic countries: Sweden, Denmark, Finland, and Norway.
Niam, which also manages opportunistic funds, launched its first core-plus fund in 2012 and collected €300 million for the strategy.
Back in January the firm smashed its original hard cap and garnered €800 million for its sixth fund in its opportunistic series – Niam Nordic VI. Niam's previous opportunity funds, Niam Nordic V and Niam Nordic IV, collected €719 million and €670 million, respectively.