Paris-headquartered investment house Ardian has raised €1.2 bn for its second real estate fund (AREEF II), which will again seek to focus on sustainable workspaces.
The fund has a diversified LP base with nearly 100 investors – more than 50 of which are institutional – from around the world, attracting capital from 13 countries across the Americas, Europe, and the Middle East.
According to Ardian, the fundraise demonstrates strong investor appetite in the European real estate market, where Ardian has significantly grown its presence in the past five years since the inception of Ardian Real Estate.
Its first fund, AREEF I, attracted more than 50 investors from 11 different countries. The follow-on fund will also invest in commercial property assets, mainly in office buildings in strategic locations in Europe.
Said Stephanie Bensimmon, head of Ardian Real Estate: 'Companies have been re-thinking ways of working for a number of years, but this shift was accelerated by the pandemic.
'It brings significant opportunities for real estate investors. Tenants are increasingly demanding high-quality and green spaces in strategic locations with strong sustainability credentials or what we call “Green+” buildings.
'With our expertise and now proven track record in the market, our “Build-to-Green+” strategy ensures our investments meet the needs of the workforce of the future.'
AREEF II, which met its initial target size, represents an increase of more than 60% on AREEF I, which totaled €737 mln. The fund also saw a re-up rate of 84%.
AREEF II, which is already more than 50% deployed, will invest in assets valued between €50 mln and €250 mln, capitalising on the long-term structural changes of working trends.
The firm use its operational capabilities to transform obsolete assets into 'Green+' assets, which means with strong sustainability credentials, answering the new needs of tenants in key city-centres across Europe.
