UB Nordic Property Fund divests logistics property in Denmark
Special investment fund UB Nordic Property has sold its part-owned logistics property in Greve, Denmark, to a fund managed by Hines, a top-tier global real estate manager. The property has a rentable area of approximately 60,000 m2 and is leased to a Danish retail operator on a long lease. UB Nordic Property Fund held 43.75 per cent of the property acquired in June 2020 together with a Norwegian investor partner.
"Together with our investor partner, we acquired 87.5 per cent of the target in the midst of the Covid-19 pandemic in the summer of 2020. We were familiar with the property since several years ago, and when the acquisition was made possible at a reasonable price, we completed the deal expeditiously. Our initial goal was not to sell the property, but after getting even higher bids for the property during the year without any changes in the property itself or the tenant outlook, we decided to accept the offer," says Jarkko Lehtonen, portfolio manager at the fund.
The real estate transaction was exceptionally profitable for the fund and the effective return (IRR) amounted to approximately 80 per cent. This transaction will have a positive impact on the change in the value of the Fund in the second quarter of 2021.
The strategy of the UB Nordic Property Fund is to invest in real estate properties with a stable return in all the Nordic countries. The fund was the first Special Investment Fund in Finland to invest in properties across the Nordic region. The fund's investments include logistics and manufacturing properties, offices, commercial real estate and plots. The fund is aimed at both institutional and private professional investors. The Fund's operations started in May 2016 and its capital on 1 April 2021 was EUR 212 million and the size of the real estate portfolio was EUR 365 million.
The UB Nordic Property Fund is part of United Bankers' Real Asset investment strategy proposition, which includes funds investing Real Estate, Forestry and Infrastructure.