NREP holds €148m first close on Nordic fund

Copenhagen-based Nordic Real Estate Partners is nearly half-way towards raising €325 million for a fund targeting value added returns from modern logistics, necessity retail and residential property in the region.

Nordic Real Estate Partners (NREP) has raised almost half its stated target of €325 million for its Nordic Strategies Fund.

The firm, which has offices in Copenhagen, Stockholm and Helsinki, and is fully-owned by its partners, revealed it held a first close for the fund, for which it is targeting 18 percent IRRs.

Announcing the initial milestone, NREP also revealed the line-up of limited partners comprised mainly institutional investors from the Nordics and Western Europe. Among them are JØP (The Pension Fund for Danish Lawyers and Economists), DIP (The Danish Pension Fund for Engineers), and Lægernes Pensionskasse (The Danish Medical Doctor’s Pension Fund).

NREP’s strategy is to invest in modern logistics facilities as well as necessity retail and residential property in large, established and growing Nordic cities. The company said it decided to hold the first closing now in order to enable it to make its first investments, one of which will be completed imminently.

NREP, whose chief executive and co-founder is Mikkel Bülow-Lehnsby, was established in 2005 and has expanded from around 30 to 40 professionals in the past 18 months. It manages various funds with focused strategies. For instance, last year it was on the fundraising trail with NREP Nordic Retail Fund II, which closed last May on €170 million of capital commitments.

In a feature called ‘The breakout kings’ published in the December 2012 issue of PERE, NREP was hotly tipped by several multi-managers as an ‘up-and-coming manager’ and ‘star’ of the future. “In spite of all the headwinds in the property sector, they have expanded their team infrastructure over the last few years and have been able to increasingly get performance results and attract investors,” one multi-manager said at the time.