Amaron Residential Real Estate Fund

The Amaron Residential Real Estate Fund is a Swedish alternative investment fund, AIF. The fund will build the core of its investments within the residential real estate sector. Our fund invests exclusively in completed, cash-flow–generating properties. We target high-quality residential buildings with green credentials. Our long-term management approach emphasizes cost-efficient, value-enhancing property operations, ensuring sustainable returns and a durable income stream for our investors.

Focusing on growth regions in Stockholm and Uppsala down to southern Sweden, we concentrate on markets with a structural shortage of rental apartments, excellent transport links, proximity to city centres, and local services.

Digital illustration of a house icon in shades of green with layered geometric shapes.

Fund Profile

  • Exclusively completed, cashflow generating properties (no development projects)

  • Focus on high quality residential properties built in the 21st century

  • Green buildings, i.e., certified properties, or the right fundamentals for a certification

  • Residential properties in Stockholm-Uppsala to the Southern part of Sweden

  • Growth regions with a structural shortage of rental apartments

  • Locations with well-functioning communications and proximity to city centres and service facilities

  • Initial investment yield of 4-5%

  • Long-term management approach with a focus on cost-efficient and value-enhancing property management

Fund objectives

  • Attractive risk-adjusted returns and strong downside protection

  • Target return on investment of 7-10% per year, including cash dividends

  • Annual cash distribution of 3-4%, following the investment period as of year 2

  • Long-term loan to value (LTV) of a maximum of 50%

  • Primarily long capital structure with fixed interest rates

  • Long-term interest coverage ratio above 2x

  • Low to amortization of senior mortgage debt

FUND TERM SHEET

  • 2024

  • SEK

  • 0.75% of AUM

  • 20%, hurdle rate 4%, no catch-up

  • 3-4%, paid 0.75-1.00% quarterly, following the investment period

  • 7-10% annually

  • Indicative 8-10 years

  • Quarterly

  • Sweden

  • Limited company (AB)

  • Amaron Fund Management AB

  • FI, Sweden

  • PWC

  • GYB Depositary Services AB

  • Andulf Advokat AB

  • SEK 4-6 billion

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