CapMan launches a new pan-Nordic hotel real estate fund
CapMan launches CapMan Hotels II Fund (“CapMan Hotels II” or the “Fund”) as a successor to its first hotel fund, CapMan Hotels RE, which was launched in 2008. CapMan Hotels II has a long-term semi-open-ended structure.
At the establishment, CapMan Hotels II has equity commitments of €368 million and it acquires a seed portfolio consisting of all the current assets in CapMan’s first hotel fund. CapMan’s objective is to significantly increase the Fund size over the coming years.
CapMan Hotels II invests in hotel properties generating a stable and predictable income diversified across the Nordic region. The Fund targets over 8 per cent annual total net returns and over 5 per cent annual distributions on NAV (net asset value). The seed portfolio for CapMan Hotels II includes 29 hotel properties located mainly in Finland. The lease agreements in the portfolio have a weighted average lease term of close to 18 years and the properties are fully let to leading Nordic hotel operators. At establishment, the investors in CapMan Hotels II consist of most of the investors in CapMan’s first hotel fund, including CapMan Plc.