Amaron Residential Real Estate Fund (current)

Amaron Residential Real Estate Fund / Established 2024

Fund Profile – Investment criteria

  • Exclusively completed, cashflow generating properties (no 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 focus on cost-efficient and value enhancing property management

Fund objectives

  • Attractive risk-adjusted returns
  • Strong downside protection
  • Target return on investment of 7-10% per year, including cash
    dividends
  • Low to amortization of senior mortgage debt
  • Annual cash distribution of 3-4%, following the investment period as of year 2
  • Long-term loan to value (LTV) of maximum 50%
  • Primarily long capital structure with fixed interest rates
  • Long-term interest coverage ratio above 2 x

Summary

FUND TERM SHEET
Amaron Residential Real Estate Fund

  • Fund currency: SEK
  • Management fee: 0.75% of AUM
  • Performance fee at exit: 20%, hurdle rate 4%, no catch-up
  • Annual distribution target: 3-4%, paid 0.75-1.00% quarterly, following the investment period
  • Target return: 7-10% annually
  • Maturity: Indicative 8-10 years
  • NAV: Quarterly
  • Country of registration: Sweden
  • Legal form: Limited company (AB)
  • Fund Manager: Amaron Fund Management AB
  • Regulatory: Authority FI, Sweden
  • Auditor: PWC
  • Depositary: GYB Depositary Services AB
  • Legal advisor: Andulf Advokat AB
  • Gross target AUM: SEK 4-6 billion