The real estate investment arm of BC Partners has raised €900m for its debut European value-add fund.

BC Partners Real Estate (BCP RE) said the capital commitments received for BC Partners European Real Estate I (BCPERE I) exceeded the fund’s initial fundraising target range of €500-700m.

BCPERE I seeks to acquire undermanaged, well-located assets with significant re-positioning or re-development potential, as well as operating platforms with opportunities to drive greater scale.

BCP RE said the fund has deployed 40% of its capital across the UK, France, Germany, and Italy into office assets, residential developments, digitally managed short-stay apartments, logistics and industrial parks, and value-add repositioning of mixed-use assets.

As previously reported, the fund acquired the Alte Post Kreuzberg office asset at Tempelhofer Ufer 1 in Berlin’s Kreuzberg district and paid around €70m to buy an office building in France from DTZ Investors.

Stéphane Theuriau, partner and head of BCP RE, said: “Our investment philosophy is based on the strong conviction that real estate markets across Europe are currently experiencing a paradigm shift.

“Demand from both tenants and investors is being fundamentally reshaped by new usages derived from the growing importance of sustainability and digitalisation, which is increasing the need for buildings that match new working and living concepts. This is where we are leveraging our operational experience to reposition existing properties and realise new development projects.”

Raymond Svider, chairman of BC Partners, said: “We are seeing many opportunities created by the dynamic and changing real estate environment, and we believe our team is best positioned to capitalise on these trends.

“This strong fundraising result comes shortly after the closing of BC Partners Credit Special Opportunities Fund II at $1.2bn, exceeding both the target size of $750m and the initial hard cap of $1bn and further demonstrates the strength of the BC Partners platform and deep partnership with its strategic investors across asset classes.”

Alexis Maskell, partner and global head of investor relations at BC Partners, said: “We believe the success of the fundraise highlights the deep asset-level knowledge and strong operational expertise of the BCP RE team, underpinned by the track record of the founding partners in deploying a similar value-add strategy at their prior firm.”

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