CapMan RE II fund reaches investment capacity of EUR 600 million
CapMan's second private equity real estate fund CapMan RE II Ky reached its maximum investment capacity of EUR 600 million on its final closing. CapMan RE II invests in property development in Finland.
At the fund's final closing last week, capital raised in CapMan RE II fund amounted to EUR 150 million. As the target is to finance on average 75% of investments made by CapMan RE II with debt financing, the raised equity corresponds to an investment capacity of EUR 600 million in total.
The fund held its first closing at the end of September 2006. Shareholders' equity was EUR 139 million and investment capacity approximately EUR 556 million prior to the final closing.
Altogether 14 Finnish institutions, including also new investors in CapMan funds, 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.
'We are pleased that fundraising and the start of investment activities by the fund have progressed according to plans. CapMan RE II offers investors an excellent opportunity to participate in property development investments in Finland, and the fund has very good preconditions in the markets within the framework of its investment focus,' 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. In 2007, the fund has already announced four new investments in Parolantie 104 and Kasarmikatu 4 in Hämeenlinna, Viinikankatu 49 in Tampere and Tokmanni's logistics centre in Mäntsälä. Hämeenlinna, Tampere andMäntsälä are all located in southern Finland within approximately 200 km reach from Helsinki.
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. The real estate development company Realprojekti Oy, a member of the CapMan Group, acts as advisor in matters related to the fund's activities.