UB Fund Sells a Bunch of Properties

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Stockholm (HedgeNordic) – UB Nordic Property Fund, an open-ended alternative investment fund managed by Finnish asset manager United Bankers, has agreed to sell a portfolio of seven properties to Norwegian real estate company RELOG for €96 million. This real estate transaction will have a significant positive impact on UB Nordic Property Fund’s return in the third quarter, with the fund’s effective annual rate of return from these properties reaching about 18 percent.

“The activity within the Nordic real estate market has recently accelerated to a very high level. Many larger portfolio deals have been made in the active market with portfolio premiums,” says Jaakko Onali, portfolio manager of the UB Nordic Property Fund. “The UB Nordic Property Fund’s transaction is a clear sign of the attractiveness of the Nordic real estate market.”

“The UB Nordic Property Fund’s transaction is a clear sign of the attractiveness of the Nordic real estate market.”

At the end of June, UB Nordic Property Fund had 49 properties in its portfolio with a combined market value of €385 million. Under the agreement, RELOG, which has REITAN Eiendom – Reitaingruppen’s real estate arm – as the main shareholder, agreed to acquire a portfolio of logistics real estate and production facilities. Three of the acquired properties are located in Sweden, two in Norway, one in Finland and one in Denmark. Norwegian family-owned retail business group Reitaingruppen operates the Pressbyrån, 7-Eleven, R-kioski, Rema 1000, Narvesen, Spaceworld and Uno-X convenience stores in the Nordic region, among others.

“The transaction we have agreed on with the UB Nordic Property Fund is extremely important for us strategically.”

“The transaction we have agreed on with the UB Nordic Property Fund is extremely important for us strategically. In the acquisition of a total of seven properties, the extensive Nordic diversification we sought was important to us,” comments Christian Wist, the CEO of RELOG. “The portfolio of high-quality real estate combined with attractive development opportunities supports the rapid and strategic growth of our real estate portfolio.”

Relying on an open-ended structure, UB Nordic Property Fund has built a well-diversified portfolio of core plus commercial properties across all Nordic countries to provide investors the opportunity to enjoy real estate returns. The fund’s institutional share class has delivered an annualized return of 6.7 percent since the fund’s launch in mid-2016. “We have been developing the fund’s real estate portfolio for a number of years and it is our intention to continue to actively create value for our unitholders also going forward,” comments Jaakko Onali. “With the sale of this portfolio comprising several properties, we will achieve a substantial value appreciation for our investors.”

“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.”

“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,” further comments Onali, the portfolio manager of the UB Nordic Property Fund. “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.”

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Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

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