United Bankers’ special investment fund UB Nordic Property Fund has agreed to sell a real estate portfolio consisting of seven logistics properties and production facilities. The Norwegian real estate company RELOG will acquire two properties in Sweden, two in Norway, one in Finland and one in Denmark for EUR 96 million.
The real estate transaction will substantially affect the fund’s return in the third quarter of the year 2021. “The activity within the Nordic real estate market has recently accelerated to a very high level. Also many larger portfolio deals have been made in the active market with portfolio premiums,” explains Jaakko Onali, portfolio manager for the UB Nordic Property Fund. Selling the portfolio in this attractive market has generated an effective annual rate of return (IRR) from the properties of approximately 18.0 per cent.
The transaction also sets the fund and its investors up to further benefit from market dynamics. “I am confident that as a result of this sale, we will be in an excellent position to further develop the fund’s real estate portfolio, with the capital now released being invested in higher yielding, and possibly, also in larger properties. The high expectations are supported by the fact that the year would appear to be turning out to be unprecedentedly active within the Nordic real estate market. Also for the fund, the investment pipeline would appear to be very good”, argues Onali further. Thus, the fund will further pursue its investment strategy in real estate properties with a stable return in all Nordic countries, including logistics and production facilities, offices, retail properties and land plots.
United Bankers Plc (UB) is a Helsinki-based Financial Services group. Founded in 1986, UB started its business in securities brokerage. Today, the company's business areas include Asset and Wealth Management and Capital Markets services.
UB is a Nordic pioneer and a global specialist within Real Asset investments. In Wealth Management, UB offers discretionary Asset Management to private and institutional asset owners in Finland and Sweden.
UB Fund Management Ltd, established in 2007, is a subsidiary within the group, dedicated to the administration of investment funds. These include European Union UCITS regulated vehicles as well as AIFMD regulated funds.
For more information, please refer to UB’s website at www.unitedbankers.com