Deals

Sparinvest Property Investors closes Fund IV on €505m

The fund represents an expansion of the Copenhagen-based multi-manager’s strategy as it will include direct investments alongside operating partners in addition to indirect investments.

-

Copenhagen-based multi-manager Sparinvest Property Investors (SPI) has held a final closing for its fourth global multi-manager real estate fund, the firm announced today.

Sparinvest raised a total of €505 million from Scandinavian institutional investors, predominantly pension funds, over the course of seven months, it said.

The final closing comes two months after PERE revealed it had reached the €500 million mark. At that stage, it was targeting a final closing of €650 million.

Investors which have committed capital include Nordic pensions: PKA, SEB Pension, Laerernes Pension, JOP and DIP. Many of the firm’s prior fund investors repeated commitments to this latest fund.

The fund is significant as it sees Sparinvest’s investment strategy expand to include direct investments alongside operating partners via joint ventures and club deals, in addition to its more traditional indirect investments.

Investments are expected to yield for investors 11 percent net IRR and the firm intends to use “moderate leverage”.

Opening investments for the fund include partnerships with operators for: workforce housing properties in Denver, light industrial properties in Las Vegas and residential assets in Dublin and Mumbai.

“While SPF IV is off to a strong start and our pipeline is deep, we will maintain our disciplined approach as these are times where patience and risk awareness are likely to pay off,” said Bo Jensen, managing partner of SPI.

Nikolaj Stampe, head of real estate at PKA, one of the fund’s anchor investors, said: ”Sparinvest Property Investors has delivered very strong results in their previous funds and we believe SPI is able to continue the good performance. Therefore it makes good sense for us to continue our collaboration and outsource our non-domestic property investments to a dedicated specialist like SPI”.

Helle Ærendahl Heldbo, portfolio manager in Lærernes Pension, added, ”We are very pleased to re-up with SPI, as international real estate is an important part of our overall real estate strategy. Through SPF IV, we get exposure to some of the best local real estate managers, which would be difficult for us to achieve on our own”.