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Report: Nordic fund generates excess investor demand, closes at €900M hard cap

Nordic Real Estate Partners' latest value-add fund raised €900 million, its hard cap, at final closing, PERE News reported.

The Copenhagen-based private equity real estate firm had to turn down capital from a range of new and existing investors for NREP Nordic Strategies Fund III, which reportedly was more than 2x oversubscribed, drawing investment interest of up to €2.3 billion.

The Fund III closing marks the second higher-risk and higher-return vehicle in the market, where the original target was exceeded by investor demand, to close in May, signifying a rising imbalance between available investment vehicles with demonstrable performance records and institutional demand for the asset class, PERE noted. GreenOak Real Estate LP earlier in May closed on $1.55 billion for its third U.S. real estate fund.

Investors in Fund III included pension funds, insurers, sovereign wealth funds, foundations, funds of funds and family offices. The fund, which has a 10-year initial fund life and three one-year extension options, also attracted capital from East Asia investors.

Nordic Real Estate Partners did not comment on the matter, according to the report.