The newly established CapMan Social Real Estate Fund (CMSRE) makes its first investment, investing in two daycare and one school asset in central Helsinki, Finland. Two of the buildings house the French Jules Verne kindergarten and school and one, once refurbished, will house daycare facilities operated by the City of Helsinki. All three buildings are under long-term leases. As energy performance certificates are obtained the properties will become EU Taxonomy aligned. After this first investment, the fund continues fundraising targeting EUR 500 million of equity commitments and total investment capacity of nearly EUR 1 billion over the coming years.
All three historical buildings under long lease agreements are located within the same block in Helsinki city centre, close to Hietalahti market square with excellent traffic connections. Two buildings were recently refurbished to modern standards and are under a long-term lease with the French Jules Verne kindergarten and school while the third building is designated for day care use by the City of Helsinki and is currently undergoing a thorough refurbishment, which is expected to be completed in 2025. The buildings will accommodate some 350 children living in the surrounding areas.
CapMan Real Estate will invest in energy saving measures and perform accessibility related improvements in the buildings. Energy Performance Certificates will be obtained for each building after which the properties will be EU Taxonomy aligned. The properties will pursue LEED green building certifications targeting Gold rating (existing buildings, operations and maintenance, schools, building design and construction).
“We are very happy to invest in these three centrally located assets which represent the first investment for our social real estate fund. Educational properties are one of the main target sectors for CMSRE and the assets fit the investment criteria and the strategy of the fund well. We look forward to our long-term co-operation with the assets’ two tenants in the early childhood education sector and providing great premises for the children and personnel. The surrounding Hietalahti area is expected to develop favourably in the future further improving the quality of the assets,” comments Aleksi Konsti, Investment Director at CapMan Real Estate.
CapMan acquired the assets from HGR Property Partners.
This is the first investment for CMSRE which continues fundraising, targeting EUR 500 million of equity commitments and total investment capacity of nearly EUR 1 billion over the coming years. The fund is looking to build a well-diversified portfolio of social real estate properties across Sweden, Finland, Denmark and Norway.
CMSRE invests in properties that are used for providing essential public services in sectors such as health care, education, civic services and emergency. Through long-term tenant relations, active leasing, operating expense management, targeted capex and ESG improvements, long-term value growth is created.
“The Nordic countries represent an attractive investment market where the volume of social real estate investments can be seen increasing rapidly. Currently, we continue fundraising while actively looking for investment opportunities across the Nordic countries which all present unique prospects within social real estate,” shares Mika Matikainen, Managing Partner and Head of CapMan Real Estate.
The fund is classified as an Article 8 financial product under the Sustainable Finance Disclosure Regulation (EU). The fund is a German special investment fund and it is primarily targeted to German institutional investors. HANSAINVEST Hanseatische Investment-Gesellschaft mbH acts as the alternative investment fund manager (“AIFM) of the fund. CapMan Real Estate acts as advisor for the fund.