Pareto Alternative Investments AS (“PAI”) has reopened and raised an additional NOK 1.1 billion in capital for its first unleveraged real estate fund, Pareto Eiendomsfellesskap (“PEF”). PEF was established in 2009 and is Norway’s largest logistics real estate fund. The fund’s existing logistics portfolio is valued at NOK 2.7 billion and is primarily focused in the greater Oslo region. The portfolio consists of long-lease contracts with an average lease length of 10.3 years and additional development potential of approximately 30,000 sqm. The fund was closed in December 2014 and reopened again in December 2017. PAI aims to raise an additional NOK 1.2 billion in capital before closing the fund with a target size of NOK 5.0 billion. The fund’s shareholders are institutional investors and include some of Norway’s largest life insurance and pension funds.
Jonathan Barfod, partner in PAI, says the reopening of PEF with very limited redemptions and further commitments from existing and new investors, confirms the fund’s attractiveness with a large existing portfolio and niche strategy.
“The projected growth of e-commerce and urbanization is expected to increase demand for logistics real estate. We are currently observing high activity in the rental market and low vacancy rates in the logistics parks in the greater Oslo area. With the reopening and extension of PEF, PAI aims to reinforce PEF’s position as the leading portfolio of core logistics properties in Norway”
Pareto Alternative Investments AS manages a broad range of direct investments within real estate, shipping/offshore and credit. The company manages a total of NOK 11 billion of equity, predominantly on behalf of institutional investors. PAI holds a license from the Norwegian FSA to manage alternative investment funds. PAI is a 100% owned subsidiary of Pareto AS and part of the Pareto Group, a leading independent operator in the Nordic market for financial services.