CapMan RE II has investment focus on property development targets in Finland. Property development comprises the development of property zoning, construction of new projects and functional development of properties. Investments are directed at commercial properties and logistics projects in particular, but the fund may also invest in office premises, industrial properties, hotels, residential projects and public administrative premises. In addition to property development targets the fund may also make selected investments in finished real estate targets. The objective of CapMan RE II fund is to develop portfolio assets for a period of some 3–7 years, after which the assets are sold to long-term investors. The real estate development company Realprojekti Oy, a member of the CapMan Group, acts as advisor in matters related to the fund’s activities.
Seven institutional investors had committed a total of EUR 67 million to CapMan RE II at the first closing of the fund. CapMan RE II GP Oy, of which CapMan Plc owns 80% and Corintium Oy 20%, acts as CapMan RE II Ky’s management company. The management company’s own investment in the fund is EUR 2 million. An average 75% of investments made by CapMan RE II are financed with debt financing, and as a result of shareholders’ equity of EUR 69 million the fund now has an investment capacity of approximately EUR 275 million.
”CapMan RE II complements the investment focus of our earlier fund that has focus on commercial properties in the Helsinki metropolitan area and expands our operations to the whole of Finland. Until now there has not been a private equity fund in Finland that has focus on property development targets, and there are lots of attractive investment opportunities on offer in this market as a result,” states Markku Hietala, Head of CapMan Real Estate and Managing Director of Realprojekti Oy. ”Realprojekti has a solid organisation that complements the expertise of our CapMan Real Estate team, as well as years of experience in the development of different real estate assets. Naturally we will utilise these strengths in the investment activities of the new fund,” Hietala continues.
The management fees of CapMan RE II are comprised on the basis of investment commitments and investments at cost. The management fee percentage in private equity real estate funds is typically lower than in funds making direct investments in portfolio companies. CapMan Plc’s share of possible carried interest generated by CapMan RE II is 60%, and the aggregate share of the investment team responsible for the fund’s investment activities and the management company’s other owner Corintium Oy is 40%.
For further information, please contact:
Markku Hietala, Head of CapMan Real Estate, Managing Director of Realprojekti Oy, tel. +358 500 405 879
Olli Liitola, CFO, CapMan Plc, tel. +358 9 6155 8306 or +358 400 605 040
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