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Core / Core+ at a glance
Core and Core+ real estate strategies focus on stabilized, income-producing properties in strong, transparent markets. Core assets offer long-term leases, low vacancy rates, and minimal operational complexity. Core+ strategies target similar assets but introduce moderate enhancements - such as light refurbishments, lease optimization, or ESG upgrades - to improve income or capital appreciation potential. These strategies provide investors with predictable cash flows, capital preservation, and limited volatility. They are well-suited for long-term investors seeking durable income, diversification, and exposure to tangible assets with inflation-linked characteristics.
Consistent Income: Stable, long-duration leases with high-quality tenants provide predictable cash flows.
Capital Preservation: Investments focus on high-quality, well-located assets with strong fundamentals.
Low Volatility: These assets are less sensitive to economic cycles due to conservative leverage and strong tenant profiles.
Moderate Upside (Core+): Potential for value enhancement through leasing improvements, repositioning, or light capex.
Portfolio Diversification: Real estate contributes to diversification with limited correlation to listed markets.
Valuation Sensitivity: Prime assets can be exposed to interest rate movements and market repricing.
Tenant Concentration: Income may depend on a small number of anchor tenants, creating concentration risk.
Limited Return Potential: Core strategies prioritize stability, which may cap upside in strong markets.
Regulatory Compliance: Increasing ESG and building standards may require future upgrades or capex.
Liquidity Constraints: Exit timing and pricing can be challenging during broader market dislocations.
Industry/Sector: Core and Core+ strategies concentrate on stabilized, income-producing assets across office, logistics, multifamily, and retail sectors. These properties are located in economically vibrant, institutionally liquid markets with strong tenant demand, infrastructure access, and long-term urban relevance. Core+ often targets similar locations but with light repositioning or re-leasing potential to enhance returns.
ESG: ESG factors are increasingly non-negotiable in Core/Core+ investing. Properties typically feature sustainable design, high energy performance ratings, and alignment with green building certifications such as LEED, BREEAM, or NABERS. Managers are proactive in future-proofing portfolios by meeting evolving regulatory standards and responding to tenant expectations around carbon footprints, wellness, and transparency.
Instruments: Equity Investments are structured as direct equity in fully or near-stabilized real estate. Core assets maintain conservative leverage and long holding periods, emphasizing predictability and income security. Core+ introduces a modest element of active management - such as lease renewals or asset upgrades - without compromising the stability profile.
Target Company Size: Target assets typically range from €50 million to €500 million+, with larger portfolios formed through club deals or aggregated funds. These buildings often feature blue-chip or government tenants, long lease durations, and institutional-quality specifications. The scale and quality of these investments make them well-suited for insurance companies, pension funds, and sovereign wealth funds seeking capital preservation with consistent yield.
In our view, the opportunities in core+ real estate are always there. Currently, the timing might be especially attractive. Coming from a period of higher interest rates, several of the larger listed companies and open-ended funds are less active than usual. And no matter the timing, the Nordic region is always among the most stable and attractive for owners of commercial real estate. At the same time, the region offers opportunities through significant differences between the countries, specific locations and specific sub-segments – not to mention the various specific projects. Unlisted assets with market imperfections mean opportunities for generating outsized returns with lower risk for a local expert.
Below are some of the core elements we prioritise - each contributing to the strong historical performance and attractive risk-adjusted returns delivered by our funds:
One of the longest and strongest track records investing in Nordics Real Estate. Several 1’st quartile-ranked funds in the Prequin database
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