Revelop closes flagship value-add fund with SEK 4 billion of commitments
Stockholm, 20 January: Swedish real estate investor Revelop, announces that the final closing of its sixth flag-ship value-add fund was affected as of end of December 2024. With SEK 3.8 billion (EUR 330 million) in equity commitments the fund is the largest in the firm’s history. Revelop VI was significantly oversubscribed to its SEK 3 billion target in a challenging fundraising environment and hit the hard-cap within one year of its first close.
Revelop has a long track-record of outperformance from investing in urban industrial, mixed-use and social infrastructure assets with transformation potential. Revelop seeks to invest in assets that can be future proofed through various ESG initiatives, taking them from “brown to green”, including significant reduction in carbon footprint, improved energy performance and environmental certifications as well as creating positive social impact.
Revelop VI will invest in submarkets and sectors that benefits from structural growth. In terms of geography the fund will focus on the greater metropolitan regions, including Öresund, with a multi-sector approach depending on the growth and demand dynamics. Currently Revelop has high conviction in urban in-fill, urban industrial and social infrastructure assets as well as assets that are experiencing cyclical challenges that are negatively impacting current values.
“ We are proud and grateful to have raised our largest ever fund in the worst fundraising environment in over a decade. The strong investor interest is a testament to our thematic approach to deliver high risk-adjusted returns and our strong operational platform that has been built patiently over time. A larger fund size allows us to execute on a broader spectrum of deals and achieve critical mass within certain themes. ” says Thomas Sipos, Group CEO & Executive Partner.
To date the fund has made acquisitions aggregating to SEK 1.6 billion taking it to 20% deployed including allocated capex. Notable transactions include amongst others the acquisition of 10 mixed-use and industrial assets from listed company Castellum, a portfolio of 7 urban telecom infrastructure assets and an urban industrial asset in a distressed deal from the bankruptcy estate of listed company Oscar Properties.
Although Revelop VI is 70% larger than the firms previous fund, it reached its hard cap and held its final close earlier than expected, with 80% of total commitments coming from non-Swedish investors. 50% of the capital comes from pension funds, endowments and sovereign wealth funds. The balance from global investment managers and family offices. Revelop will offer co-investment opportunities on a deal-by-deal bases to existing fund investors meaning the fund-size might increase further.
Conversely, according to data from PERE and Preqin, private equity real estate fundraising volumes for the first nine months of 2024 were down 35% from 2023 and at their lowest levels for over a decade. Total number of funds and aggregate capital raised globally in 2023 was down c.40% from the 2021 peak, nearing GFC levels. Q1-Q3 2024 also marked the lowest amount of capital raised for private real estate funds since the first three quarters of 2012.
Legal counsel for the establishment of Revelop VI was provided by Mannheimer Swartling Advokabyrå. Lazard was acting as exclusive placement agent.
For further information, please contact:
Thomas Sipos, Group CEO
+46 70-980 66 06, thomas.sipos@revelop.se