Sveafastigheter, the Nordic private equity real estate fund manager, has held a first close of €90m ($121 million) for its third fund, Sveafastigheter Fund III.
In a statement the firm said it was aiming for a total of €300-400 million for the vehicle which will primarily target portfolios in the Nordics with potential for improved cash flow or value creation.
Stockholm and Helsinki-based property adviser, Leimdörfer, is its placement agent and is targeting Nordic investors while First Avenue Partners is raising capital from investors outside the region.
Initial LPs include a number of Swedish institutional investors and high-net-worth individuals with the majority of commitments coming from those that invested in predecessor funds, Sveafastigheter Sverige I and Sveafastigheter Fund II. Those funds – launched in 2003 and 2006 – garnered €50 million and €130 million, respectively.
Sveafastigheter Fund III will primarily focus on investments in Sweden and Finland with a secondary focus on acquisitions in Norway and Denmark. In addition the fund can invest a limited part of its equity in the Baltic States.
Simon de Château, CEO, said the ongoing yield adjustment and large volumes of senior financing maturing and needing to be refinanced in coming years were likely to provide “very attractive” acquisition opportunities compared to the last few years.
“Our tried and tested model of working closely with local asset management partners will also allow us to source assets that are not in the public domain and continue to create value during our holding period rather than just expecting to ride the yield curve.”