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Brunswick Real Estate announces first close of SEK 2.6 billion in second Nordic real estate debt fund

Debt, Press Release

STOCKHOLM, 12 December 2016:
Brunswick Real Estate Capital has successfully held the first closing of its second senior debt fund in the Nordics, thereby reaching over SEK 4 billion under management. Main investors are some of the region’s largest institutions. The successful first close reinforces real estate debt as an asset class as well as continuing investor demand for Nordic commercial real estate exposure.

Brunswick Real Estate Capital – the credit arm of BRE – broke new ground in March last year when it closed the first fund focused solely on Nordic real estate debt as an asset class. The first fund has since been fully invested. For the second fund, BRE has sought funding from existing sources of capital including Norway’s largest life insurer Kommunal Landspensjonskasse (KLP) and Swedish PRI Pensionsgaranti. In addition, new investment has come from the leading Swedish insurance and pension savings company Folksam.

Brunswick Real Estate Capital II is an unlevered closed ended real estate debt fund offering senior secured lending in Sweden, primarily in the range of SEK 200 to 600 million per loan with a term of up to ten years.

Louise Richnau, CEO and Partner of Brunswick Real Estate Capital, said:
“We are very pleased to see the support and trust among our investors for our second debt fund. With our management team’s vast experience of the Nordic property market and access to an increasingly strong deal flow we’ve got a solid foothold in the market of private debt lending.”

“Demand for Nordic real estate remains high and with macro issues such as the Brexit vote and the US Elections creating uncertainty in other markets, we believe investors will continue to be attracted to safe havens like the Nordics. This, coupled with the fact that lending remains restrictive from traditional sources of capital, were the main drivers behind our creation of the second fund.”

Peter Leimdörfer, Co-Managing Partner Brunswick Real Estate, adds:
“Despite Sweden consistently being one of the most liquid real estate markets in Europe, the availability of financing to borrowers has historically been volatile and dependent on the appetite of a handful of banks. To become an even better partner for our clients we added the debt investment management service to our group in 2013, as the first of its kind in the Nordics. With the first close of the second fund we can state that there is a true and growing demand for debt investment management.”