JP Morgan Asset Management has raised €746.6m for its third European fund.
The closed-end vehicle is investing in the main markets of France, Germany and the UK, with the three countries being the fund’s initial focus.
The investment manager said the amount it raised was 25% above the fund’s target.
Backed by global institutional investors, the fund will target assets in need of refurbishment over the next 18-24 months.
Pete Reilly, chief executive and head of real estate for Europe, said: “We are not making macro bets on the region’s economy.
“Our focus is on asset selection where we can drive results with refurbishment, leasing and change of use.”
Achieving the latter could be easiest in the UK, where permitted development rights were recently extended for investors looking to convert office assets to residential use.
The fund’s commitments are approximately 30% deployed.
About €220m has been invested in six assets – in Berlin, Paris, southeast England, Cologne and Hannover.
The move comes at a time of increased appetite for value-add strategies and 12 months since JP Morgan said it would look to enhance the value of properties through refurbishment or by increasing occupancy as part of a €3bn opportunistic investment drive in Europe.
The Continent’s real estate sector is experiencing a strong bias toward low-risk assets, creating a pricing mis-match.
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