NREP has closed the sale of all underlying assets in its NREP Logistics Fund and three Swedish properties from NREP’s C1 Fund, thereby delivering very strong risk adjusted returns to their investors in these two underlying funds.
The successful and highly competitive process, which was organised by CBRE, attracted international attention with bidders from across the globe, highlighting the strong quality of the portfolio.
The combined transaction value amounts to approximately €650M and is not only the largest prime logistics transaction in the Nordics, but also one of the largest portfolios traded in Europe. NREP was in addition to CBRE advised by Real Advokatbyrå and Bernstrom & Partners.
The portfolio consists of 28 modern efficient logistics properties located in key distribution hubs across Sweden, Finland and Denmark with almost 650,000 sqm, of which a large part has been developed by NREP over the past six years. NREP will continue to manage the portfolio of properties.
“We are very proud of having secured such a strong exit for our investors and believe, this is another validation of NREP’s ability to identify and execute long term value add strategies within focused segments” says Rickard S. Dahlberg, Co-CIO and Partner at NREP.
The purchaser is a vehicle capitalised by the Medical Doctors’ Pension Fund (Lægernes Pensionskasse) together with the Danish Pension Fund for Engineers (DIP) and the pension fund for Danish lawyers and economists (JØP). PFA Pension, the largest private pension fund in Denmark and a current investor in NREP Logistics Fund, will re-invest part of its proceeds in the new vehicle.
"The consortium is very pleased with this unique Nordic prime portfolio and that we have been able to retain management at attractive terms. The latter will ensure continued stability and access to NREP's experience within the sector. We believe the portfolio will not only generate strong income but also offer various value add initiatives not least driven by the more than 200,000 sqm of undeveloped land included in the portfolio", comments Jan Willard, Head of Alternative Investments, Medical Doctors’ Pension Fund.
“The indirect acquisition fits well with our overall strategic objective of increasing our exposure to real estate as well as increasing our allocation to logistics, which is a sector we believe will outperform. We are likewise pleased with the consortium of likeminded investors that we have been able to structure around this investment allowing us to take a long term view without losing flexibility”, comments Jacob Hübertz, CIO at DIP/JØP.
Catella Sweden, Roschier, Bech Bruun, E&Y and KPMG Acor Tax have been engaged as advisors by the consortium. The new structure will be fully financed by Danske Bank.
“We are honored that the new consortium has asked us to continue to manage the portfolio and confident that we will be able to keep on generating strong risk adjusted returns, on the basis of our strong market position and experience in the sector combined with the attractive sector outlook" says Mikkel Bülow-Lehnsby, CEO and Partner at NREP.
NREP Secures the Exit of the Largest Nordic Prime Logistics Portfolio to Date
Sweden — NREP (Nordic Real Estate Partners) has sold the largest portfolio of modern prime logistics properties in the Nordics to a consortium of four Danish pension funds.
Nicklas Tollesson[email protected]