Nordic real estate fund manager Genesta has secured €334 mln at the first close of its third value-add fund, GNRE Fund III, including commitments from eight investors in its predecessor fund.
'We are very pleased with the strong support from our existing investor base. This is a testament to the success of the predecessor funds and our clients’ strong belief in our strategy,' said David Neil, CEO and founding partner of Genesta.
According to Genesta, the fund now seeks additional capital from investors to arrive at its target of €450 mln.
The fund said that the closing follows the successful completion of the investment period for GNRE Fund II, which Genesta expects to significantly exceed its return target. To date GNRE II has sold two properties, with an average net internal rate of return in excess of 30%.
The new fund is targeting a return of 12-14%, with an investment strategy in offices in the capital city regions of the Nordics, as well as logistics and retail in the capital city regions and larger regional cities. Value is added through refurbishment, lease up and repositioning of assets, Genesta said.
With leverage, the fund has a target real estate investment volume of around €900 mln.