Bridging Nordic excellence with global investment opportunities

4 October 2024

Since its founding in 2013, new SCC Patron Slättö has rapidly emerged as a leading private equity real estate investor in the Nordics. With over £2.1 billion in assets under management - and a transaction history exceeding £3.3 billion - the firm has become a key player in the region’s dynamic real estate market. We spoke to Managing Partner, Jonas Andersson, who shared insights on Slättö’s strategic vision for reshaping the future of Nordic real estate investment – and revealed their key ingredient for success.

The global real estate market has faced significant challenges in recent years, from rising debt costs to pressures on certain segments like office spaces. In this volatile context, the Nordics have emerged as a beacon of opportunity. 

“The Nordic real estate market is known for its liquidity and resilience,” says Jonas Andersson, Managing Partner at Slättö. “It ranks as the third largest in Europe and adapts rapidly to changing interest rates, offering attractive price points, and a promising outlook.”

He adds, “Together with the UK, the Nordic real estate market has in general adapted a lot quicker to the new interest rate environment, providing very attractive price points and a strong outlook going forward.” According to Jonas, this rapid adaptation and robust market conditions make the Nordics an increasingly appealing destination for global investors seeking stability and growth.

Slättö’s strategic role
“We are well set to act as a bridge to the Nordic region for investors interested in allocating capital,” Jonas explains. With two main funding strategies, Core+ and their series of ‘Value Add’ funds, Slättö offers diverse return profiles for investors.

The firm has steadily been increasing its presence in London as part of its strategy to build long-term, successful relationships with both current and future investors, and Jonas highlights the SCC as a great hub to connect with key market stakeholders. 

“Maintaining strong relationships with investors and financing partners are key components for us,” he adds. “If managed correctly, downturns and price corrections can present significant opportunities.” This proactive approach is evident in Slättö’s recent achievements, including deploying £759 million in just the past six months, making them one of the largest buyers in the Nordic region.

A clear approach to energy efficiency
As the colder season approaches, Slättö remains steadfast in its commitment to sustainability and energy efficiency. Jonas highlights the firm’s dedication to integrating advanced energy solutions into its projects. “Sustainability is essential for future-proofing investments,” he explains. 

Slättö focuses on energy-related upgrades in older properties, such as advanced ventilation, water heating, and rooftop solar panels, which not only enhance property value, but also yield returns between 7-10 per cent. With over 80 per cent of last year’s long-term investment intended to improve the company’s future performance and financial health, Slättö leads by example in proactively integrating renewable energy solutions like geothermal heating and renewable electricity.

Lessons from the market
Reflecting back, Jonas highlights a crucial lesson learnt during his career: “Having a best-in-class team is key to everything,” he asserts. “Working with the best, in a supportive and inclusive culture, translates into superior market knowledge and the ability to source the best deals, ultimately delivering top tier returns.”
 
Slättö’s expertise in navigating market changes and cultivating strong relationships, positions them as a crucial connector of international capital to the Nordic region. They are set to deliver value to both the Nordic markets and its global partners – as well as maintain its position as a gateway to Europe’s northern real estate landscape.