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CapMan Hotels RE fund closes at EUR 872.5 million


CapMan Press Release 16 July 2009 at 9.00 a.m. EET

CapMan Hotels RE fund closes at EUR 872.5 million
Fundraising for the CapMan Hotels RE fund has been finalised. The fund, which invests in hotel real estate, has an investment capacity of EUR 872.5 million.
CapMan Hotels RE fund invests in existing hotel properties and new hotel development projects primarily in Finland and Sweden. The fund acquired a portfolio of 39 hotel properties in connection with its establishment in January 2008 and it still has some 2.5 years to make new investments or add-on investments.
“We develop the hotel properties in cooperation with tenants. The most significant development projects this year have targeted Cumulus Airport Hotel near Helsinki-Vantaa Airport and Rantasipi Laajavuori Hotel in Jyväskylä,” says Pirjo Ojanperä, Head of CapMan’s Real Estate Hotel fund.
“The fundraising market has changed considerably since the establishment of the hotel fund. We are pleased with the final closing of the hotel fund in this situation,” says Senior Partner Jerome Bouix, Head of Investor Services.
Altogether 21 institutions mainly from Finland have committed EUR 332.5 million of equity into the fund, with the balance comprising senior debt. CapMan Hotels RE Oy, which is 80% owned by CapMan Plc, acts as the fund’s management company. The management company’s own commitment into the fund is EUR 5 million. The management fee for the fund is based on acquisition cost of the current portfolio including executed add-on investments. The fund will begin to generate carried interest when investors have regained their investment and a preferred annual return of 8%, after which the division of cash flows will be 80% for investors, 12% for CapMan Plc (carried interest) and 8% for the fund’s investment team.
For further information, please contact:
Pirjo Ojanperä, CapMan Real Estate, Head of Real Estate Hotel fund, tel. +358 207 207 642 or +358 50 388 3306
CapMan is one of the leading alternative asset managers in the Nordic countries and Russia and manages private equity funds with approximately EUR 3.4 billion in total capital. CapMan has six investment areas (CapMan Buyout, CapMan Technology, CapMan Life Science, CapMan Russia, CapMan Public Market and CapMan Real Estate), and each of them has a dedicated team and funds. Altogether CapMan employs over 140 people in Helsinki, Stockholm, Copenhagen, Oslo and Moscow. CapMan was established in 1989 and its B shares are listed on the Helsinki Stock Exchange since 2001.