£1.3B Fundraisings Show There’s Still Plenty Of Appetite For European Real Estate
Two leading fund managers have raised a combined €1.44B (£1.3B) to invest in European real estate, despite the problems facing the sector.
Swedish investment manager EQT has raised €1B (£910M) of equity for its second value-add investment fund, which it said will have a major focus on beds and sheds.
EQT said it expects the fund to finance the development of 7,000 rental homes in Sweden, France and the UK. It has a joint venture in the UK to invest £1B in the BTR sector, aiming to build 3,000 homes in the outer boroughs of London alongside sector specialist Sigma Capital.
The fund exceeded its €750M equity target. EQT said more than 35% of the commitments were closed after February during a period of significant global lockdowns due to the coronavirus pandemic, and the latter part of the fundraising process was carried out digitally.
Elsewhere, LaSalle Investment Management has raised €435M (£395M) for its fourth debt fund, as it looks to take advantage of traditional lenders pulling back in an uncertain world.
“We are already seeing some compelling opportunities given that the traditional banks remain relatively cautious while it also allows us to wait and take advantage of any dislocation opportunities that arise from the current uncertainty,” LaSalle Managing Director Ali Imraan, who manages the fund, said in a release.
The fund will focus on mezzanine debt investments secured on real estate across Western Europe with a focus on Germany, the Netherlands, the UK, France and Spain. It has an ultimate equity target of €1B.
