The EPH Sverige fund will aim to tap into the property opportunities that exist in Sweden by targeting good-quality, pre-let residential portfolios that typically offer net yields ranging between 5 and 8 per cent. The fund will hold as many as 200 units.
EPH Partners said Sweden was well placed to provide a “fertile investment ground” for investors, as the country was ranked as Europe’s fourth-largest real estate investment market in 2007, with more than £11bn in real estate transactions.
The managers also said the strength of Swedish financial institutions, combined with sound investment fundamentals in the property market, should keep the area safe from any fallout of the global slowdown.
The managers aim to raise as much as £30m, with participating shares being offered at a subscription price of £1 per share. The anticipated term for EPH Sverige is 5-7 years, with a maximum life span of 10 years. The target aggregate subscription amount for EPH Sverige is £25m before expenses, with an expected closing date of March 31 2009.
The fund has a minimum investment of £10,000, with multiples of £1,000 thereafter. IFAs can earn as much as 6 per cent commission, with an additional trail commission of 0.75 per cent of equity invested.
Paul Hogarth, co-founder of EPH Partners, said: “The fundamentals of the Swedish property market should provide investors with an attractive rate of return. More than 60 per cent of the population live in rented or co-operatively owned accommodation, and rental demand for residential apartments consistently exceeds supply in our target areas, the commuter towns surrounding Stockholm and Gothenburg.”
He added: “Capital values in south-west Sweden are low, often less than the price of land and build cost combined, restricting residential development in the region, which creates a barrier to oversupply.