Brunswick Real Estate announces first close of SEK 2.6 billion in second Nordic real estate debt fund
STOCKHOLM, 12 December 2016:
Brunswick Real Estate Capital has successfully held the first closing of its second senior debt fund in the Nordics, thereby reaching over SEK 4 billion under management. Main investors are some of the region’s largest institutions. The successful first close reinforces real estate debt as an asset class as well as continuing investor demand for Nordic commercial real estate exposure.
Brunswick Real Estate Capital - the credit arm of BRE - broke new ground in March last year when it closed the first fund focused solely on Nordic real estate debt as an asset class. The first fund has since been fully invested. For the second fund, BRE has sought funding from existing sources of capital including Norway’s largest life insurer Kommunal Landspensjonskasse (KLP) and Swedish PRI Pensionsgaranti. In addition, new investment has come from the leading Swedish insurance and pension savings company Folksam.
Brunswick Real Estate Capital II is an unlevered closed ended real estate debt fund offering senior secured lending in Sweden, primarily in the range of SEK 200 to 600 million per loan with a term of up to ten 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 for our second debt fund. With our management team’s vast experience of the Nordic property market and access to an increasingly strong deal flow we’ve got a solid foothold in the market of private debt lending.”
“Demand for Nordic real estate remains high and with macro issues such as the Brexit vote and the US Elections creating uncertainty in other markets, we believe investors will continue to be attracted to safe havens like the Nordics. This, coupled with the fact that lending remains restrictive from traditional sources of capital, were the main drivers behind our creation of the second fund.”
Peter Leimdörfer, Co-Managing Partner Brunswick Real Estate, adds:
“Despite Sweden consistently being one of the most liquid real estate markets in Europe, the availability of financing to borrowers has historically been volatile and dependent on the appetite of a handful of banks. To become an even better partner for our clients we added the debt investment management service to our group in 2013, as the first of its kind in the Nordics. With the first close of the second fund we can state that there is a true and growing demand for debt investment management.”
Media contacts
Louise Richnau, CEO, Brunswick Real Estate Capital
t: +46 70 346 22 19 e: louise.richnau@brunswickrealestate.com
Anna Åkerlund, Head of Communications at Brunswick Real Estate
t: +46 70 778 28 97 e: anna.akerlund@brunswickrealestate.com
Notes to editors
Brunswick Real Estate Capital is an investment adviser to Brunswick Real Estate Capital, FCP-SIF (the “Fund” or “Brunswick Real Estate Capital II”), an unincorporated co-proprietorship of investments organized in the form of a mutual fund with multiple compartments/Sub-funds governed by the laws of the Grand Duchy of Luxembourg which has obtained the authorisation of the Luxembourg Supervisory Commission of the Financial Sector. The Fund is subject to the law of February 13, 2007 relating to specialized investment funds, as amended or supplemented from time to time and qualifies as an alternative investment fund within the meaning of the Luxembourg law of 12 July 2013, as may be amended from time to time. Crestbridge Management Company S.A. is appointed as an external alternative investment fund manager to the Fund. www.brunswickrealestate.com/capital
Brunswick Real Estate (”BRE”) is a market leading group within advisory, research, investing and debt financing focusing on real estate in the Nordics. By combining in-depth knowledge of real estate and the Nordic market with an investment bank’s capital markets expertise and financing edge, the group has advised clients in numerous complex transactions and created investor value through active and local investment management.
The group has repeatedly been awarded best in class within its areas by Preqin and Euromoney. The group is made up of Leimdörfer, Sveafastigheter, Sveafastigheter Bostad, Brunswick Real Estate Capital, Brunswick Alternative Strategies, Brunswick Hotels and Brunswick Invest. The team includes some 90 real estate investment professionals in Stockholm, Malmö, Helsinki, Copenhagen and London as well as senior advisers with broad international expertise. www.brunswickrealestate.com