Mandatum AM AIFM Ltd

Mandatum AM AIFM Ltd

Documents related to Mandatum AM AIFM Ltd’s functions are presented on this page. The page contains information for investors of the funds and the tenants and other stakeholders of the investment objects of the funds.


Contact details

Mandatum AM AIFM Ltd
c/o MAM PL 1221, 00101 Helsinki
fundservices@mandatumam.com

Mandatum AM AIFM Ltd does not currently consider principal adverse impacts ("PAI") of its investment decisions in accordance with Article 4 of the SFDR* as the availability of the data on the investment objects is not yet in an adequate level for the purposes of publishing a full PAI statement. Mandatum AM AIFM Ltd will assess its position annually and is evaluating the ability to develop its process concerning consideration of PAI.

*Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector


Mandatum AM Finland Properties II

Special investment fund (non-UCITS, AIF) investing into Finnish properties.According to the fund policy the target is to invest into diversified assets that have significant cash flow and development potential, located mostly in the top 20 cities/areas of Finland. This indicates how you can really rely on us striving for the best investment decisions. The fund’s subscriptions have been temporarily suspended.

Our goal is to have an annual return of 8-10 % to our investors after expenses, however it should be noted that there are always risks attached to investments. The number of risks in high-yielding real properties is naturally higher, but we seek to control and mitigate the risks with effective asset management by our skilled team of professionals.

Fund unit value (EUR): 31 December 2023: 123,1826 (136,3426 adjusted for profit distribution)

Special investment fund Mandatum AM Finland Properties II is temporarily suspending redemptions and subscriptions of fund units

Mandatum AM AIFM Ltd has decided to temporarily suspend redemptions and subscriptions of fund units in the Special investment fund Mandatum AM Finland Properties II (Fund). The interruption is based on a decision made by the company’s Board of Directors on 23 January 2024. 

On 3 October 2023, Mandatum AM AIFM Ltd announced that it is postponing the payment of redemptions linked to the September 2023 redemption date in accordance with the Fund’s rules. As a consequence of the nearly unprecedented slowing down of the property transaction market, it has not been possible for the Fund to sell properties at a sensible price and thus acquire sufficient cash assets to pay out redemptions.

According to KTI Finland, which produces information on the real estate market, the property market’s transaction volume in 2023 was 64 per cent lower than in the preceding year, totalling roughly EUR 2.6 billion1. The significant slowing down of the property market’s transactions can be attributed to the rapid spike in the interest rate level and difficulties in the availability of financing. The market’s transaction volume in 2023 was similar to the years after the 2008 financial crisis, when the size of the transaction market was also significantly smaller than it is now. In a quiet market, there are fewer buyers and transaction processes take longer. 

Portfolio management has used the means available for managing liquidity. In the current situation, the Fund cannot accept redemption or subscription orders until market activity has sufficiently returned to normal. In Mandatum AM AIFM Ltd’s view, it is in the interests of the fund unit holders to temporarily suspend redemptions and subscriptions. 

Despite the exceptionally challenging liquidity situation, the fundamentals of the Fund’s real estate portfolio are in order

The strategy, which leans on a strong cash flow, has proven to be a defensive element against changes in return requirements and rising interest expenses. The real estate portfolio’s net return in relation to market values at the turn of the year is 8.7% (so-called initial return). The Fund’s economic occupancy rate is historically high. The rental market and new leasing are at a good level, and rents are being raised in line with the indices. The Fund’s moderate loan-to-value ratio has been ensured through a long-term financing agreement. Most of the debt in use has been hedged. 

Mandatum AM AIFM Ltd continuously assesses the means available for increasing cash assets. Mandatum AM AIFM Ltd continuously monitors the continuation of the grounds for temporarily interrupting redemptions and subscriptions. The temporary suspension of redemptions and subscriptions will continue for as long as there are grounds for it. The temporary suspension of redemptions and subscriptions does not require any actions from the fund unit holders.

Additional information:

For more information, please send an email to fundservices@mandatumam.com. 

1 KTI Finland: Vuoden 2023 kiinteistökauppavolyymi jäi 2,6 miljardiin euroon (https://kti.fi/vuoden-2023-kiinteistokauppavolyymi-jai-26-miljardiin-euroon)

Risk is always inherent in investments. More detailed risk descriptions are available in the Fund’s product material found from this webpage.

MAM_SuomiKiinteistöt_graafi_0124_eng.png

Past performance does not predict future returns. Investing includes risks and investors should familiarize themselves with the Fund documentation and read the full risk descriptions of the Fund.

Special Investment Fund Mandatum AM Finland Properties II rules and other documents are being updated. The updates will enter into effect on 19.12.2023. The new documents are presented as links below this publication.

 


Only for professional investors

Mandatum AM Growth Equity II

Growth equity investments into scalable Nordic growth companies with a focus on Finnish markets.

According to the fund policy, Mandatum AM Growth Equity II ("GE II") invests into Nordic growth companies that are past their start-up phase and are looking for growth capital that will help them scale their business internationally. GE II will be the second vintage of MAM’s growth equity strategy, which was formally set up in 2020. The strategy is industry-agnostic while focusing on selected themes that it considers attractive. The average investment per target company ranges between €10-30 million. The substantial investment size enables GE II to differentiate itself from local peers by providing a solution that few local players can match

The fund's strategy embraces a hands-on approach and the combination of significant capital injection and active support resonates well with potential target companies. In addition, MAM Private Equity is flexible in terms of deal structuring as a variety of options are available for target companies, including primary and secondary investments.

The strategy has a long heritage in Nordic minority investments, and it leverages our deep experience built over 30 years of private equity investing. This longstanding history has generated a broad contact network of high-quality relationships and partnerships with GPs, LPs, management teams, and portfolio companies.



Legal disclaimer

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