• 0
  • Home
  • About Us
  • What We Do

Shopping Cart

GPAM
  • Home
  • About Us
  • What We Do

Why institutional investors are now in love with Nordic real estate

Stockholm, Sweden (Credit: iStock)
Stockholm, Sweden (Credit: iStock)

Institutional capital is piling into Nordic real estate as investors hunt for returns.

The $49 billion or so invested in real estate last year in the north European region — Sweden, Norway, Denmark, and Finland — was the most ever recorded and appetites appear to be just as strong this year, according to Bloomberg.

Linus Ericsson, CEO of Jones Lang LaSalle’s Swedish outfit said that demand is coming from deep-pocketed investors like pension funds. His firm hired three new senior advisors in the region this month.

“They have massive amounts of money, and the bigger the better,” he said.

Foreign investors were involved in a third of transactions by value last year and this year some of the world’s biggest investors are planning to expand their operations in the region, even as some worry that Europe’s real estate market could be approaching a bubble.

New York-based Neuberger Berman is opening an outpost in the region, along with Goldman Sachs and a Luxembourg-based entity backed by the Qatari royal family.

So-called hybrid bonds — designed either to convert to equity or absorb losses — are growing in popularity with real estate firms in the region looking to raise money, largely because they’re cheaper than equity.

In 2018, only one real estate company offered a hybrid bond of benchmark size, but last year three did. In total, Nordic real estate companies issued $1.5 billion in hybrid debt last year.

The influx of capital has caught the eye of domestic regulators in Sweden and Denmark, where interest rates have been below zero. The former’s Financial Supervisory Authority told banks to build capital against potential losses and Denmark’s regulatory body wants to ensure lenders don’t get lax with credit standards. [Bloomberg] — Dennis Lynch

The post Why institutional investors are now in love with Nordic real estate appeared first on The Real Deal Los Angeles.

Powered by WPeMatico

  • 26 January 2020
  • The Real Deal
  • Uncategorized
  •  Like
An eXp agent made a thoughtless joke after Kobe Bryant’s death. She was fired →← Inside Akon’s 2,000-acre crypto-city in Senegal
  • Recent Posts

    • Hoteliers sound the alarm on looming distress  May 24, 2025
    • Growth markets see retail boom even with tariff uncertainty May 24, 2025
    • Westchester resi project gets city OK after union drops objection May 23, 2025
    • WATCH: ‘Father of CMBS’ Ethan Penner to run for governor of California May 23, 2025
    • Fashion Island office fetches $756 psf May 23, 2025
  • Recent Comments

    • Archives

      • May 2025
      • April 2025
      • March 2025
      • February 2025
      • January 2025
      • December 2024
      • November 2024
      • October 2024
      • September 2024
      • August 2024
      • July 2024
      • June 2024
      • May 2024
      • April 2024
      • March 2024
      • February 2024
      • January 2024
      • December 2023
      • February 2023
      • January 2023
      • December 2022
      • November 2022
      • October 2022
      • September 2022
      • August 2022
      • July 2022
      • June 2022
      • May 2022
      • April 2022
      • March 2022
      • February 2022
      • January 2022
      • December 2021
      • November 2021
      • October 2021
      • September 2021
      • August 2021
      • July 2021
      • June 2021
      • May 2021
      • April 2021
      • March 2021
      • February 2021
      • January 2021
      • December 2020
      • November 2020
      • October 2020
      • September 2020
      • August 2020
      • July 2020
      • June 2020
      • May 2020
      • April 2020
      • March 2020
      • February 2020
      • January 2020
      • December 2019
      • November 2019
      • October 2019
      • September 2019
      • August 2019
      • July 2019
      • June 2019
      • May 2019
      • April 2019
      • March 2019
      • February 2019
      • January 2019
      • December 2018
      • November 2018
      • October 2018
      • September 2018
      • August 2018
      • July 2018
      • June 2018
      • May 2018
      • April 2018
      • March 2018
      • February 2018
      • January 2018
      • December 2017
    • Global Property and Asset Mangement, Inc.
      137 North Larchmont
      Los Angeles, California 90010
      +1 213-427-1127

    © 2025 GPAM