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Danish schemes DIP, JØP back NREP Nordic real estate fund

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  • Copenhagen, Denmark

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Danish pension funds DIP and JØP are among a group of investors in Nordic Real Estate Partners’ Nordic Strategies Fund, following the announcement of its first close at €148m.

The closed-end fund, for which NREP is looking to raise €325m, was backed by a number of Danish institutions including Juristernes og Økonomernes Pensionskasse (JØP) and Danske civil- og akademiingeniørers Pensionskasse (DIP).

Other investors – including Lægernes Pensionskasse (Denmark’s medical doctors pension fund) – were among those backing the fund.

DIP and JØP last year announced they were merging their respective investment operations into a single department managing more than DKK85bn (€11.4bn).

Although having previously invested with NREP, the investors are new to the logistics sector.

NREP is focused on logistics as well as retail and residential.

Jacob Hübertz, deputy CIO at the merged DIP/JØP department, said there was opportunity in the Nordics logistics sector given the increase in e-commerce, along with the fact the sector was operated by “less sophisticated” players.

He said: “It’s a new area for us but we are seeing increased demand for logistics and we think that will continue over the coming years with the rise in internet shopping.”

In a press announcement, NREP communicated the first closing was held to provide capital for initial investments, with one expected to be completed imminently.

NREP was not available for a comment, but it is understood the fund will follow a similar strategy to previous NREP funds, investing in prime logistics and necessity-driven retail and residential, with a typical asset size of €10m-30m.

The eight-year fund will likely have its main focus on Sweden and Denmark, followed by Finland and Norway.

A second closing is expected during the summer, a source said.

Last month, DIP and JØP joined three other Danish pension funds in a commercial real estate loan club fund managed by AXA Real Estate.

Along with AP Pension, Sampension and TDC Pension, the two pension funds will invest DKK3.6bn in property debt over the next two years.

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  • QN-2496

    Asset class: Commodities.
    Asset region: World.
    Size: CHF 100 – 150 m.
    Closing date: 2018-12-12.

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