Amaron Commercial Real Estate Fund - Amaron Real Estate

Amaron Commercial Real Estate Fund

Amaron Commercial Real Estate Fund / Established 2012

Historical Performance

Investment objective

The Amaron Commercial Real Estate Fund is a Swedish alternative investment fund, AIF. The fund will build the core of its investments within the commercial real estate sector; office space, industrial properties, logistic properties and real estate for public use. Typically, the assets will range between SEK 40-200 Mn. The fund may also pursue opportunities and development opportunities in the residential sector.

The Greater Copenhagen region, one of the most attractive regions in the Nordics, has been carefully selected based on its underlying economic fundamentals in combination with the team’s local knowledge, network and experience.

The ultimate fund value is expected to be SEK 4-6 Bn and the indicative duration of this closed-end fund is expected to be ten years.

Fund Profile – Investment criteria

Amaron Commercial Real Estate Fund

In the heart of Greater Copenhagen Region – a dynamic transnational market of over 4,4 million consumers
The link between the 28 million consumers in Scandinavia and over 100 million in the Northern Europe
Green buildings, i.e. certified properties, or the right fundamentals for a certification
Commercial properties such as light industrial, logistic, office and strategic projects
Cash-flow driven portfolio with inflation hedged index-linked contracts
Locations with well-functioning communications and proximity to City-centres and service facilities
Typical individual property size SEK 75-150 million
Long-term management approach with focus on cost-efficient and value enhancing property management

Fund objectives

Attractive risk-adjusted returns combined with long-term capital growth.

Coupon
An annual coupon of minimum 4 per cent paid quarterly, portfolio development realized at exit
Return of investment
Generate an average return on investment of 10-15 per cent annually (including coupon)
Leverage
The long-term leverage use is set to 50 per cent LTV
Asset Allocation
Focus on commercial properties such as office, industrial, logistic and public residential properties and projects
ESG
Sustainability requirements applies to the fund as well as to the property management and technical maintenance

Fund structure

Summary

FUND TERM SHEET
Amaron Commercial Real Estate Fund

Fund currency: SEK
Management fee: 0.85% of AUM
Performance fee at exit: 20%, hurdle rate 5%, no catch-up
Annual distribution target: 4%, paid quarterly
Target return: 10-15% annually
Maturity: Indicative 8-10 years
NAV: Quarterly
Country of registration: Sweden
Legal form: Limited company (AB)
Fund Manager: Amaron Fund Management AB
Regulatory: Authority FI, Sweden
Auditor: PWC
Depositary: GYB Depositary Services AB
Legal advisor: Andulf Advokat AB
Gross target AUM: SEK 4-6 billion