Judge's report

DNB Real Estate Investment Management (REIM) manages the direct real estate portfolio of DNB Life and two alternative investment funds, focusing on commercial real estate with strong attention to ESG.

The strategy is to invest in office, retail and hotel properties in the largest cities in Norway and Sweden. The fund targets high-quality assets with a central and strategic location close to public transport hubs, and in areas with a limited supply of additional space. These are market areas with typically high-occupancy levels, strong rental growth and high liquidity. The aim is to attract a robust tenant-mix and to deliver a stable cash flow. The fund is carefully managed with a focus on risk-adjusted returns and capital preservation as the key performance indicators.

SOKA-BAU has strong internal management and its attention to ESG is noteworthy as is its focus on the whole value chain. The management of the assets has a future-orientated focus, ensuring, in combination with the longterm holding approach, long-lasting and sustainable returns.

The fund is currently in the process of decreasing the average age of the direct RE portfolio by divesting older assets, purchasing new properties, redensificating properties and through in-house managed project developments to minimise CAPEX and letting risks.