GreenOak has raised €250m ($266.8m) for a European real estate fund with a focus on Spain.

The investment manager said North American, European and Asian corporate and government pension funds backed the fund, which closed in July.

Foundations, large family offices, and fund managers have also committed to the vehicle.

With 65% leverage, the manager is looking to invest up to €700m. The fund has bought or committed to invest around €325m so far.

GreenOak said it can to bring in co-investors to invest alongside the fund, which is targeting the logistics, office, retail and residential sectors in Madrid and Barcelona, as well as other large Spanish cities. The fund can also invest in land with planning for development.

John Carrafiell, co-founder of GreenOak, said: “In our opinion, Spain, along with Italy, continues to be amongst the best distressed, deep-value real estate opportunities in Europe, if not the world, combining deep value from forced sellers – with strong economic growth and recovery”.

Carrafiell said the fund is focused on “well-located, quality buildings in need of recapitalisation and hands-on repositioning management”.

The fund is investing in assets as small as €8m and up to €25m, which, he said, ”isn’t the target of most funds” or Spain’s listed Socimi (REIT) vehicles.