Niam, one of the largest institutional holders of private real estate in the Nordic region, this week announced the successful closing of its seventh Nordic-focused real estate fund with more than $1 billion in equity commitments.
The equity raise came in over 35% over Niam’s initial target, and will create the single-largest private real estate fund in the Nordic region.
Niam Nordic VII’s opportunistic real estate strategy can invest in all property types and asset classes across the Nordic region, targeting 18-20% gross IRR’s. Nearly 60% of the predecessor fund’s investments—predominantly retail and office properties—targeted Denmark, with Finnish properties accounting for another 24% of the total.
Private real estate news journal PERE reported that Niam’s seventh fund is 38% larger than its predecessor, with three-quarters of the capital for this larger fund coming from returning investors. Pension plans—including the New York State Common Retirement Fund, the third-largest pension fund in the United States—accounted for more than half of the equity raise for Nordic VII, with sovereign wealth funds, endowment, foundations, and other institutional investors accounting for the rest.