Realkapital launches €100m Nordic recovery fund

The Oslo-based firm wants to capitalise on secondary mispricing of real estate debt and equity in Norway, Sweden, Finland and Denmark.

Realkapital Partners, the Norway-based real estate private equity firm, is launching a Nordic Recovery fund.

The vehicle hopes to take advantage of what it calls secondary market ‘mispricing’ for real estate debt and equity, hoping it can make 20 percent returns as the Nordic region recovers.

According to a marketing sheet, Realkapital believes that Nordic countries have remained strong when compared to other parts of Europe and the rest of the world.

It also points out that unlisted equity in real estate companies and funds is being sold by distressed sellers at up to 50 percent discounts to net asset value. It wants to create a semi-open fund lasting five years described as a core-plus, value added vehicle that will invest in both listed and unlisted real estate debt and equity.

Previous funds Realkapital has raised include a European Opportunity vehicle which raised €86 million in late 2007. The firm followed up with Realkapital European Opportunity II last year which held a first closing in September.

Realkapital was co-founded by Tore Borthen and Morten Kampli in 2006, both of whom left Aberdeen Property Investors in order to establish the firm.