BGO has raised €2bn for its latest European value-add real estate fund.
The real estate investment manager said its fourth fund in the series secured €1.46bn in commitments from new and existing investors and €520m in co-investment capital for industrial and data-centre platforms in Europe.
BGO’s European value-add strategy has invested more than €4bn since 2014.
John Carrafiell, co-CEO at BGO, said: “BGO’s European value-add series has now successfully navigated multiple cycles over more than a decade, with Fund IV being our largest raise yet and well positioned to take advantage of this current cycle.
“Building vertically-integrated capabilities across multiple countries and having the skills to invest in leading operating companies and platforms, like data-centre company Bulk Infrastructure and developer and contractor Techbau, has given our European strategy a unique edge.”
Toby Phelps, managing partner and head of European equity at BGO, said: “Our European value-add fund franchise continues to attract strong support from existing and new investors.
“BGO’s ability to navigate changing market circumstances, manage risks and capture opportunities across the key markets in Europe has contributed to developing strong, long-term relationships with our investors.
“Our fourth European value-add strategy retains significant dry powder to capitalise on the strong opportunity in European real estate as markets enter a period of greater stability and growth prospects. BGO’s differentiated deal flow, strong history of co-investments in sectors with long-term growth prospects and our strong fiduciary mindset will continue to enable the successful growth of our European platform.”
The manager added that its value-add fund will be largely focused on sectors that are benefiting from structural growth in demand – specifically, the living sector, logistics, including cold storage and urban logistics and data centres, as well as those that are experiencing cyclical challenges that are impacting values.
Francesco Ostuni, managing partner and European CIO at BGO, said: “We are pleased with the support received for our European value-add franchise. The strategy’s relative performance and track record in offering attractive co-investment opportunities in best-in-class and scalable platforms have resulted in more than 80% of the investors in this new fund being comprised of existing investors who continue to partner with us, as well as a number of new strategic relationships.”
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