Nordic Real Estate Partners (NREP)
The NREP prides itself as "a leading Nordic private equity real estate firm focused on generating superior r isk-adjusted returns for institutional investors by working with thematic value-add i nvestment strategies and hands-on active asset management."
Nordic Strategies Fund II — €1.7 billion
- NREP's Nordic Strategies Fund II was created primarily as an investment vehicle that would replicate the success of prior funds especially those that dealt with "modern logistics, necessity-driven retail and residential sectors in Denmark, Sweden, Finland and Norway, but will also engage in new strategies such as student housing."
- The fund was oversubscribed to the tune of €1.7 billion. The fund was announced on July 11, 2016, and closed on November 14 the same year.
- Nordic Strategies Fund II is registered in Luxembourg with total assets of $357.8 million.
- The fund has a total of 127 beneficial owners with 70% non-US ownership. The fund is managed by NREP AB.
- According to NREP's press release, investors in the fund include "broad range of Nordic, European and US blue chip institutions." A large portion of Nordic Strategies Fund II investments come from former investors in other NREP's successful predecessor funds.
- NREP continues to attract investment owing to the company's strong financial growth. According to NREP, the company is "consistently outperforming relevant benchmarks every year and achieving an average +20% IRR on its investments since inception, with no single year of losses."
NREP's Logistics Property Fund — €1.1 billion
- The fund was created by consolidating NREP's 49 modern logistics properties to create an investment portfolio of €1.1 billion. According to the company, this fund is considered as "the largest and most prime quality portfolio in the Nordics with a footprint in all the prime logistics hubs, modern efficient buildings, a weighted average lease term exceeding 8 years and a blue-chip tenant base that includes virtually all the largest 3PLs in the Nordic region." The fund also aims at taking a strategic long term approach towards the Nordic's logistic market.
- Investor in the fund include "local pension funds such as AP1, PFA Pension, DIP (Danske civil-og akademiingeniørers Pensionskasse), JØP (Juristernes og Økonomernes Pensionskasse), and Lægernes Pension as well as international institutional investors such as Allianzand Helaba Invest."
- The fund is managed by Logicenters, Nordic's "largest manager and developer of modern logistics real estate."
NREP Nordic Strategies Fund IV — €1.25 billion
- In November 2019, NREP announced plans on creating another €1.25 billion fund. The primary purpose of this fund was to create an investment vehicle for the "undeserved market segments." These undeserved market segments include "logistics, student housing, serviced living, care homes and other seniors housing assets."
- The fund is scheduled to be announced in 2020 and there are reports that the fund is already attracting investors. The San Diego City Employees’ Retirement System (SDCERS) was considering committing €27.1 million to the Nordic Strategies Fund IV.
- Nordic Strategies Fund IV is expected to have a 13% internal rate of return. According to the Townsend Group, a company that advises SDCERS, this fund will be crucial in diversifying SDCERS "$8.4 billion pension fund’s international real estate portfolio."