CapMan launches a new pan-Nordic hotel real estate fund

CapMan Real Estate press release
19 December 2019 at 8.30 a.m. EET

CapMan launches a new pan-Nordic hotel real estate fund

CapMan launches CapMan Hotels II Fund (“CapMan Hotels II” or the “Fund”) as a successor to its first hotel fund, CapMan Hotels RE, which was launched in 2008. CapMan Hotels II has a long-term semi-open-ended structure. At the establishment, CapMan Hotels II has equity commitments of €368 million and it acquires a seed portfolio consisting of all the current assets in CapMan’s first hotel fund. CapMan’s objective is to significantly increase the Fund size over the coming years.

CapMan Hotels II invests in hotel properties generating a stable and predictable income diversified across the Nordic region. The Fund targets over 8 per cent annual total net returns and over 5 per cent annual distributions on NAV (net asset value). The seed portfolio for CapMan Hotels II includes 29 hotel properties located mainly in Finland. The lease agreements in the portfolio have a weighted average lease term of close to 18 years and the properties are fully let to leading Nordic hotel operators. At establishment, the investors in CapMan Hotels II consist of most of the investors in CapMan’s first hotel fund, including CapMan Plc.

“CapMan’s first hotel fund has developed well in the years following the financial crisis and its investors have expressed a keen interest in a product that combines strong rental income with an open, long-term structure. In addition to the seed portfolio, CapMan Hotels II looks for additional properties in which to invest, as well as new capital. We have successfully invested in hotel properties in Finland and believe that there are similar investment opportunities available also across the Nordics. The new structure enables long-term cooperation with our tenants, the hotel operators, and works particularly well for hotel investments,” comments Mika Matikainen, Managing Partner at CapMan Real Estate.

“A strong cash flow and a long-term fund structure are attractive to investors and we are pleased to be able to expand our product portfolio in this direction. The new CapMan Hotels II Fund has generated a lot of interest among existing and new investors and is a great fit with CapMan’s strategy. Our objective is to increase Fund size significantly,” says Joakim Frimodig, CapMan Plc’s CEO.

The transaction will realise carried interest to CapMan in accordance with fund agreements. The new Fund generates management and performance fees based on commitments made to the Fund in accordance with standard practices within the industry.       

CapMan Real Estate’s Nordic organisation includes more than 40 committed real estate investment professionals. We manage over €2.5 billion in real estate investments.

For more information, please contact:
Mika Matikainen, Managing Partner, CapMan Real Estate, tel. +358 40 519 0707

About CapMan
CapMan is a leading Nordic private asset expert with an active approach to value creation. We offer a wide selection of investment products and services. As one of the Nordic private equity pioneers, we have developed hundreds of companies and real estate assets and created substantial value in these businesses and assets over the past 30 years. Our objective is to provide attractive returns and innovative solutions to investors. We have a broad presence in the unlisted market through our local and specialised teams. Our investment strategies cover Private Equity, Real Estate and Infra. We also have a growing service business that includes procurement services, fundraising advisory, and analysis, reporting and wealth management services. Altogether, CapMan employs 140 people in Helsinki, Stockholm, Copenhagen, London, Moscow and Luxembourg. Visit www.capman.com for more information.

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