Northern European group Brunswick Real Estate has announced the final close of its second senior debt fund in the Nordics, having raised total equity commitments of over SEK 6.6 bn (€640 mln) from some of the region’s largest institutions.
Brunswick Real Estate Capital, the credit arm of Brunswick Real Estate, said the vehicle is 'by far the largest Nordic fund focused on real estate senior debt'.
Investors include existing clients such as Norway’s largest life insurer Kommunal Landspensjonskasse (KLP), Swedish insurance and pension savings company Folksam Group and Swedish PRI Pensionsgaranti.
Brunswick Real Estate Capital II is an unlevered closed-end real estate debt fund offering senior secured lending in Sweden, primarily in the range of SEK 400 to 1,000 mln per loan with a term of up to 10 years.
Louise Richnau, CEO and partner of Brunswick Real Estate Capital, said: 'We are very pleased to see the support and trust among our investors. Despite high demand for Nordic real estate and Sweden consistently being one of the most liquid real estate markets in Europe, the availability of financing to borrowers has historically been volatile. Real estate is an asset class with a long investment horizon which requires long-term capital on the equity as well as on the debt side, which unlevered institutional capital can offer.'
Michael Kjeller, CIO of Folksam Group, added: 'Investing in long-term senior debt is a good alternative to our fixed income portfolio, especially with the current low yield environment and uncertainty in the market. As a pension savings company with an infinite perspective, the risk-reward is attractive and with Brunswick Real Estate as our investment manager we get the sought-after exposure and efficient management.'
Brunswick Real Estate Capital launched the first fund focused solely on Nordic real estate debt in 2013.