The fund structure will never have external loan capital and thus complies with
§ 3-1 (1)(12) of the Norwegian asset management regulations. It is therefore suitable for investors who are not permitted to invest in assets financed with debt. Individual investors who are looking for a geared investment can raise debt finance independently or make such an investment through the fund’s FCP feeder fund in Luxembourg.
As of 31 March 2022, the fund’s net asset value was NOK 11.346 million. The fund has both Norwegian and foreign participants today.
Portfolio structure
DNB Scandinavian Property Fund aims to achieve a broad exposure to commercial property within different segments and geographic regions. The goal is to build up a broad, diversified property portfolio of NOK 12.5 billion. The guidelines for the composition of the portfolio are as follows:
» Offices: 35 to 80 per cent
» Shopping centres: up to 40 per cent
» Hotels/other: up to 25 per cent
The investments will mostly be in Norway but the fund‘s rules also allow for investments in other Scandinavian countries, predominantly Sweden. The fund aims to continue the strategy followed by DNB Livsforsikring in its property investments.
Yield
The fund’s goal is to achieve an annual total yield of 7 – 9 per cent over time, of which 3 – 5 per cent is to be paid out each year to investors. As an asset category, commercial property has traditionally provided good diversification and risk-adjusted returns compared to investments in equities and bonds. Investments in property will thus help increase the risk-adjusted return on an investment portfolio. The annualised return the last 3 years has been : 5.9 per cent, for the last 5 years the annualised return has been 6.5 per cent. See also “Investment Reports”.
No set lifetime
The fund has no set lifetime but mechanisms are in place that enable both the external investors and DNB Livsforsikring to apply for redemption or dissolve the fund under certain circumstances.
Shares and units in DNB Scandinavian Property Fund are marketable and DNB Markets will endeavour to quote prices for secondary trading.
