Sveafastigheter fundraising for third fund reaches €120m

Stockholm-based private equity real estate firm Sveafastigheter has held a second closing on its third Nordic real estate fund. The firm, launched in 2003 is targeting between €300m and €400m in total commitments.

Sveafastigheter, the Stockholm-based private equity real estate business founded in 2003, has held a second closing for its latest real estate fund.

The €30 million closing brings the total raised for the Nordic real estate-focused fund to €120 million. The firm aims to corral a total of between €300 million and €400 million for the fund come final closing, expected by December. The fund’s first closing was €90 million in March this year.

Investors in the fund include Swedish institutional investors and “reputed global investment houses”.

The fund will focus on real estate around the Baltic Sea, primarily Sweden and Finland where the firm expects to invest 70 percent of its equity. “The fund’s strategy is opportunistic with a value-added approach to asset management,” according to its website.

Sveafastigheter, led by chief executive officer Simon de Chateau and chief investment officer Patrick Gylling, raised €130 million for its second fund, holding a final closing in 2009. Targeting gross IRRs of 18 percent, the vehicle also invested in Sweden and Finland. The firm’s first fund, Sveafastigheter Sverige I, closed on €50 million.

de Chateau said in an announcement: “Over the past few months the real estate markets in the Nordic region have shown clear signs of a return to liquidity and we are building a pipeline of attractive opportunities and expect to close a first transaction shortly,”