September 20, 2021

Pareto Alternative Investments successfully launches strategy for leveraged exposure to logistics real estate

Pareto Alternative Investments AS has established Pareto Eiendomsfellesskap Invest AS (“PEFI”), an AIF-fund which only invests in the existing AIF-fund named Pareto Eiendomsfellesskap IS/AS (“PEF”). PEFI utilizes a bank facility providing a target leverage of 35 % LTV and maximum leverage has been set to 40 % LTV. The expected return is 6-8 % (IRR) post corporate tax and the fund aims to pay dividends of 4.5 - 5.0 % p.a. PEFI will only be marketed towards professional investors and is suitable for investors seeking leveraged exposure towards the largest logistics real estate portfolio in Norway.

Jonathan Barfod, Partner & Investment Director Real Estate said:

With the establishment of PEFI we are able to provide a new group of investors, such as family offices and foundations, an opportunity to invest in Norway’s largest portfolio of logistics real estate. Instead of establishing a new closed-ended logistics fund, PEFI enables our existing fund to continue to grow and strengthen its market position for prime logistics real estate in the Oslo-region. PEF now holds a portfolio of over 300,000 sqm, consisting of 28 properties with 43 tenants and several land plots for newbuild projects. The fund is still expanding and our goal is for PEF to be the preferred partner for tenants seeking logistics space and for investors seeking attractive long-term returns. PEF has generated an annual unleveraged return of 9.7 % since the fund was established in 2009.

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