Stock exchange release - 1 February 2007
CapMan RE II reaches investment capacity of approximately EUR 550 million at second closing
CapMan’s second private equity real estate fund CapMan RE II Ky held today its second closing at EUR 556 million. CapMan RE II invests mainly in property development in Finland. The fundraising for the CapMan RE II continues in 2007 and its investment capacity can rise at maximum to EUR 600 million.
The capital raised during the second fundraising round amounted to EUR 70 million. As the target is to finance on an average 75% of investments made by CapMan RE II with debt financing, the raised equity increases the fund’s investment capacity by approximately EUR 280 million to EUR 556 million in total. The fund held its first closing at the end of September 2006 with shareholders’ equity of EUR 69 million and an investment capacity of approximately EUR 276. So far 11 Finnish institutions have participated to the fund. CapMan RE II’s management company, which is 80% owned by CapMan, has committed EUR 2 million to the fund. Reaching the fund’s maximum investment capacity of EUR 600 million still requires new commitments worth EUR 11 million to the fund.
”We are very pleased with the successful second closing of CapMan RE II. There are lots of attractive investment opportunities on offer in the Finnish property development market, and we expect the fund to announce its first investment during the first quarter of 2007. We have very good resources for creating value in the future investment targets as our team of about 25 professionals has years of experience in the real estate development”, says Markku Hietala, Head of CapMan Real Estate and Managing Director of Realprojekti Oy.
CapMan RE II is the first private equity fund in Finland that has focus on property development targets. 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.
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
CAPMAN PLC
Jerome Bouix
Partner
Fundraising, IR and Communications
Distribution:
Helsinki Exchanges
Principal media
www.capman.com
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