CapMan Real Estate, a new subsidiary of the Finnish buyout group, has teamed up with nine Finnish institutional investors to launch a €500m private equity real estate fund, CapMan Real Estate I.
At the same time, the group announced its first deal with the acquisition of a 17-strong property portfolio in the Helsinki region for €220m. The best-known asset in the portfolio is the Bronda development at Etelaesplanadi in the centre of Helsinki. The majority of the other assets comprise modern office buildings with vacancy rates around 5%.
The expansion of business operations into private equity real estate funds is a significant strategic step for CapMan, bringing the total capital managed/advised by it to around €1.9bn.
The limited partners of CapMan Real Estate I are Veritas Pension Insurance Company, Veritas Life Insurance Company, Etera Mutual Pension Insurance Company, Suomi Mutual Life Assurance Company, Varma Mutual Pension Insurance Company, Kaleva Mutual Insurance Company, Local Insurance Mutual Company, Sampo Life Insurance Company and The State Pension Fund.
The new vehicle will focus on commercial premises in the Helsinki metropolitan area. The remaining capital in the fund is intended to be placed over a five-year period in new real estate investments and on development of the portfolio.
To facilitate the management of the new fund, CapMan has established a subsidiary named CapMan Real Estate, which will be 80% owned by CapMan and 20% by real estate consulting company Corintium. In addition, CapMan and Corintium have acquired specialists in real estate development business, Realprojekti and Realprojekti Kiinteistokehitys