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Northam closes Canadian property fund

The Toronto-based fund manager raised all of the capital for its latest vehicle from institutional investors in Europe.

Northam Realty Advisors Limited has collected C$375 million (€251 million; $282 million) for its second Canadian real estate fund, Northam Canadian Commercial Property Fund II. The vehicle received commitments from eight German and Austrian institutional investors. According to a 2013 announcement, Fund II had an original target of C$400 million to C$500 million.

The fund’s investment strategy is focused on properties in the office, logistics and retail sectors in Canada’s largest and most liquid commercial real estate markets. As of the end of the first quarter, Northam had invested in six office, retail and logistics assets with a total aggregate value of C$258 million on behalf of the fund and currently is in negotiations on a seventh acquisition. One of the firm's most recent Fund II transactions was the acquisition, announced in January, of a 250,000 square foot logistics property located in Greater Toronto area.

In 2008, Northam launched the Northam Property Funds FCP-FIS product line, targeting primarily European institutional investors that seek exposure to the Canadian commercial real estate market, and founded a new Luxembourg-based platform, Northam Property Funds Management. The two funds in the product line, Northam Canadian Commercial Property Fund I and II, are regulated by the Commission de Surveillance du Secteur Financier in Luxembourg. The funds are focused on core and core-plus investments that yield stable income and capital appreciation for the firm’s international investor base. 

Founded in 1971, Northam currently has $1.625 billion of assets under management in Canada, representing 4.9 million square feet of commercial real estate space. It has four product lines, including Northam Property Funds FCP-FIS and a line of private equity real estate funds. The firm also manages separate accounts for MPC and Union Investment, two of the largest German real estate fund sponsors. Northam serves as the exclusive Canadian advisor to both.

German placement agent Selinus Capital advised Northam on the fund.