Swedish real estate investor Revelop announced that the final closing of its sixth flag-ship value-add fund was affected as of the end of December 2024. With SEK 3.8 billion (€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 a 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 benefit 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 delivering 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 percent 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 percent larger than the firm’s previous fund, it reached its hard cap and held its final close earlier than expected, with 80 percent of the total commitments coming from non-Swedish investors. 50 percent 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 basis to existing fund investors meaning the fund size might increase further.
