Fastighetsräntefonden Tessin reports return for May 2021
Photo: Christian Gustavsson
Fastighetsräntefonden Tessin reports return for May 2021
Stockholm, Sweden- Tessin Nordic AB (publ) (NASDAQ: TESSIN B) – The leading digital platform for investments in real estate projects in the Nordics is reporting that the company’s partner fund, Fastighetsräntefonden Tessin, has generated returns of 0.48 percent in May and 2.42 percent to date in 2021. Since inception in Q4 2019, Fastighetsräntefonden has returned 9.24 percent.
Fastighetsräntefonden Tessin is an alternative investment fund launched as a partnership between Tessin and the fund management company Alfakraft Fonder in the autumn of 2019. While traditional real estate funds acquire physical properties or property-related equities, Fastighetsräntefonden invests exclusively in property loans brokered by Tessin. In brief, the fund is structured so that Alfakraft actively screens the property loans presented on the Tessin platform to select and build a diversified portfolio of property loans with good spread of risk and target return of six to eight percent a year.
With a return of 6.05 percent for the full year 2020, Fastighetsräntefonden was one of the best fixed income funds in Sweden in terms of return and risk-adjusted return.
Fund manager’s remarks:
“Activity is set to remain high this summer for Swedish property developers and the project pipeline we can invest in looks attractive. The fund prefers loans where the percentage of costs incurred is high in relation to the loan principal and where collateral for the loan is highly valued in the market”, says Bengt Lindblad, Alfakraft Fonder AB, manager of Fastighetsräntefonden Tessin.
Fastighetsräntefonden invested a total of SEK 27.6 million in three new loans in May while reporting a NAV price of SEK 102.42 for the month. In total, Fastighetsräntefonden has invested in 52 property loans arranged via the Tessin platform, of which 21 have been repaid. The portfolio currently contains 31 loans to property projects in two categories, residential and commercial, with an average duration of around 10.3 months. Since inception in Q4 2019, Fastighetsräntefonden has returned 9.24 percent at an annualised risk of 0.51 percent.*
Overview of Fastighetsräntefonden Tessin for May 2021:
NAV: 102.42
Return: 0.48%
Amount invested: SEK 27.6 million
Number of investments in loans: 3
Total number of loans in the portfolio: 31
Return since inception: 9.24%
About Fastighetsräntefonden Tessin
Fastighetsräntefonden Tessin is an alternative investment fund launched as a partnership between Tessin and the fund management company Alfakraft Fonder in the autumn of 2019. While traditional real estate funds acquire physical properties or property-related equities, Fastighetsräntefonden invests exclusively in property loans brokered by Tessin.
*Risk is measured based on annualised standard deviation (based on monthly data).