Niam closes out fourth fund – delivers market-leading returns

All properties in Niam Nordic Fund IV have been fully developed and divested. Thereby, Niam closes out its fourth fund with strong results. Nam IV has delivered returns that place the fund among the top 5% of the highest ranked funds in the world according to Cambridge Associates benchmark.

Niam Nordic IV closed in 2008 with total commitments of €670 million. During the course of the acquisition period until 2011, Niam acquired nearly 80 office and retail properties, mainly in Sweden and Norway for ~€2 billion. Niam completed some of the largest transactions in the Nordic market for the fund through the acquisition of 40 office properties in Sweden from AP Fastigheter in 2008 and the acquisition of Sektor Eiendomsutvikling in 2010 in Norway.

Johan Bergman, CEO at Niam says: “Fund IV’s market leading returns have reinforced Niam’s positon as the undisputed leading real estate private equity firm in Northern Europe. Niam’s disciplined investment approach at acquisition and active asset management during the holding period create added value in every investment and attractive risk-adjusted returns to our investors. I feel confident that the Niam organization will continue to deliver to the highest standards in our current funds under management with €4 billion in combined property value and investment capacity.”

Niam renegotiated and extended approximately 60% of the total rental value in the office portfolio acquired from AP Fastigheter. The largest 10 renewed leases covered ~100,000 sqm of lettable area, and Niam successfully raised rents and extended the term to an average of 8 years. Niam also created 50,000 sqm building rights for residential units. The 40 properties in the portfolio were sold through 28 transactions to 22 different buyers.

Sector Eiendomsutvikling, acquired by Niam IV, is one of the largest owners of shopping centers in Norway. Niam also acquired Linderud Center as a strategic add on to the company. Project development projects added 15,000 sqm of lettable area to the portfolio and the fund was granted planning permission to develop an additional 6,000 sqm. Net operating income increased by 7% per year, driven by steady organic growth and project development.

In 2011, the fund acquired Heron City. During Niam’s holding period, Heron City was developed into a strong destination for shopping, food and entertainment in Stockholm. The number of visitors at exit was over 7 million per year, an increase by over 30% since acquisition, and retail sales exceeded SEK 1.2 million per year. Niam also introduced new brands among Heron City's tenants and renegotiated and extended several strategically important leases. Niam has now sold Heron City to a company jointly owned by Varma, CapMan Nordic Real Estate Fund and Cavendo. As Heron City was the final asset in the fund, Niam IV is thereby fully divested.

Facts Niam Nordic Fund IV

Vintage: 2007
Strategy: Opportunistic
Type: Closed-ended
Size: €670 million
Sector and geography: Commercial properties in the Nordic countries
Completed acquisitions: ~2 billion / ~1.2 million sqm
Property value at disposition: ~2.7 billion
Net returns: IRR 15% / Multiple 1.7x

For more information please contact:
Johan Bergman, CEO, Niam AB
+46 8 5175 85 95, johan.bergman@niam.se

For further information or questions, please contact:
Jennifer Andersson, COO, Head of Investor Relations & Business Development
+46 8 5175 8559, jennifer.andersson@niam.se

Niam is the leading real estate private equity firm in Northern Europe with real estate assets under management of approximately €3 billion. Niam offers global institutions the opportunity to invest in the Nordic property markets. Niam was established in 1998 and has invested over €6.3 billion through its own funds since 2000. Niam has a fully integrated investment team of 50 dedicated real estate professionals with experience across all major asset classes. The company is headquartered in Stockholm and has offices in Oslo, Helsinki and Copenhagen. For more information, please visit www.niam.com.