Bonum and BGO establish platform with 1.4 billion in equity
Bonum is joining forces with the global capital manager BGO on a Nordic investment platform for property development. The platform will have an equity framework of 1.4 billion kroner and will provide Bonum with greater purchasing power in the Nordic region.
Bonum is joining forces with the global capital manager BGO on a Nordic investment platform for property development. The platform will have an equity framework of 1.4 billion kroner and will provide Bonum with greater purchasing power in the Nordic region
Bonum is investing 300 million kroner in the new platform, which builds on the company's development environment and project portfolio. The collaboration with BGO gives Bonum greater financial capacity to carry out larger acquisitions, partnerships and development projects in the Nordic region.
The partnership marks a new growth phase for Bonum. The company already has a strong position in property development and an established data centre venture through its subsidiary Arcem. With BGO on board, Bonum gains more capital and greater scope for action in the Nordic region.
Enhanced purchasing power
– The partnership with BGO is an important milestone for Bonum. Over more than 15 years, we have built a strong development environment with local market knowledge, high execution capacity and a significant project portfolio. With BGO as our partner, we gain additional strength to take larger positions in projects, portfolios and companies in the Nordic region, says Anders Bakken Eriksen, CEO of Bonum.
Over time, Bonum has built on its strong position in residential development in the Oslo area and evolved into a broader property and infrastructure-focused development environment with activity in residential, commercial and data centre projects. The new platform gives the company increased financial muscle to act in a market phase where several players need capital, pace and execution capacity.
– We still have strong faith in the underlying demand for good homes in central locations. At the same time, we are disciplined. We are searching broadly for new projects, but we will not buy at levels that do not reflect today's interest rate and capital market. For us, this is about combining enhanced purchasing power with the same transaction discipline as before, says Eriksen.
Bonum now seeks dialogue with landowners, developers, funds and companies considering sales, partnerships or capital-strong solutions for larger development projects in the Nordic region.
Data centres as a strategic growth area
Bonum has established Arcem as a subsidiary focused on the development of data centre property. Through the new investment platform, the venture is further strengthened, with increased financial capacity to further develop a portfolio of sites for potential data centre use.
Arcem develops data centre projects where site, power access, grid capacity, planning permission and realistic time to market are carefully assessed and systematically developed over time.
– Data centres are a strategic growth area for Bonum alongside property development. In this market, the bottleneck is not demand, but the ability to combine the right site, real power access, grid connection, planning permission and credible progress towards realisation. It is precisely at this intersection that Arcem has built its position, says Eriksen.
Global institutional partner
BGO is a global capital manager with approximately 89 billion dollars under management. The company has extensive experience from the Nordic property markets, with investments in areas including residential and data centres, and has invested over 9 billion kroner in the Nordic region since 2020. BGO is also a major and long-term owner in Bulk Infrastructure.
– Bonum has over time built a solid development environment with local market knowledge, execution capacity and a project portfolio that fits well with the investment areas we want to build on in the Nordic region. The platform is established to pursue opportunities where capital, local insight and operational execution can create long-term value, says Sebastian Rossavik, Managing Director at BGO.
Facts: BGO
BGO is a leading global adviser in property investments, property loans and property-related services. BGO serves the interests of more than 750 institutional clients and has expertise in managing office, industrial, residential, retail and hotel properties worldwide. BGO has offices in 25 cities in 12 countries, with local knowledge, experience and extensive networks in the regions where the company invests in and manages property on behalf of its clients through direct investments, secondary transactions and co-investments. BGO is part of SLC Management, Sun Life's institutional capital management business in alternative and traditional asset classes.
The assets under management stated above include property investments and property loans managed by the BGO group and affiliated companies. From 1Q21, it also includes certain uncalled capital commitments for discretionary capital until they expire, and excludes certain uncalled capital commitments where the investor has full discretion over the investment.
