Blue Owl Capital has raised €1.6bn for its inaugural European net lease real assets fund, surpassing both its target and hard cap.
The manager said final commitments for Blue Owl Real Estate European Net Lease Fund (OREF Europe) exceeded the initial €1bn target and a revised €1.5bn hard cap.
Capital was secured from investors including pension funds, insurers, sovereign wealth funds, asset managers, endowments, foundations, and family offices across the US, Europe, APAC and the Middle East, Blue Owl added.
OREF Europe targets single-tenant, net-leased real estate and infrastructure assets, including mission-critical industrial, data centre and essential retail properties.
Last month, Blue Owl and Moor Park Capital Partners completed the £1.6bn (€1.9bn) acquisition of 12 UK hospitals let to Spire Healthcare Group, marking a major deployment for the European net lease strategy.
Marc Zahr, co-president and global head of real assets at Blue Owl, said: “We believe Europe represents the next frontier for institutional sale-leasebacks.
“Having successfully executed this strategy targeting investment grade corporations across the US, we are applying the same disciplined approach to a European market which represents an estimated €13.4trn opportunity, where we believe many of these companies can unlock substantial value by monetising owned real estate and reinvesting that capital into more accretive uses across their business.”
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