Northern European real estate group NREP has secured €900 mln of equity commitments in the final close of its NREP Nordic Strategies Fund III, focusing on underserved real estate segments in the Nordics.
NREP Nordic Strategies Fund III raised the equity from a range of pension funds, insurance companies and sovereign wealth funds from the Nordics, Europe, US and East Asia.
'Based on our team’s operational capacity we capped the fund’s size to €900 mln, compared to a total investor interest of approximately €2.3 bn,' commented NREP's chief investment officer Rickard Dahlberg.
The vehicle will focus on student housing, flexible living for young professionals, rental apartments, senior co-living, care homes, community retail centers and modern logistics as well as on logistics buildings around the Nordic capitals and main infrastructure corridors.
NREP has already invested a quarter of equity commitments.
'We have seen a surge in demand from investors and municipalities that share our belief that the real estate industry can do better. Providing real estate products that better address people’s needs, in particular addressing underserved user groups, is a massive opportunity to create more value for all stakeholders,' said NREP's CEO Mikkel Bülow Lehnsby.