Amaron Residential Real Estate Fund / Established 2024
Fund Profile – Investment criteria
Exclusively completed, cashflow generating properties (no projects)
Focus on high quality residential properties built in the 21st century
Green buildings, i.e. certified properties, or the right fundamentals for a certification
Residential properties in Stockholm-Uppsala to the Southern part of Sweden
Growth regions with a structural shortage of rental apartments
Locations with well-functioning communications and proximity to City-centres and service facilities
Initial investment yield of 4-5%
Long-term management approach with focus on cost-efficient and value enhancing property management
Fund objectives
Attractive risk-adjusted returns
Strong downside protection
Target return on investment of 7-10% per year, including cash dividends
Low to amortization of senior mortgage debt
Annual cash distribution of 3-4%, following the investment period as of year 2
Long-term loan to value (LTV) of maximum 50%
Primarily long capital structure with fixed interest rates
Long-term interest coverage ratio above 2 x
Summary
FUND TERM SHEET
Amaron Residential Real Estate Fund
Fund currency: SEK
Management fee: 0.75% of AUM
Performance fee at exit: 20%, hurdle rate 4%, no catch-up
Annual distribution target: 3-4%, paid 0.75-1.00% quarterly, following the investment period
Target return: 7-10% 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
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