Invesco Real Estate latest value-add real estate fund will be able to invest in preferred equity and debt in a bid to capitalise on disruption across real estate markets, IPE Real Assets understands.

Invesco European Value-Add Fund III has raised €400m in a first close, according to sources familiar with the fund, and will target gross returns of between 15% and 20%.

Invesco is understood to be targeting a total capital raise of $1bn.

To take advantage of anticipated disruption in the UK and continental Europe, the fund will be able to invest across the capital stack, in both equity, preferred equity and debt.

Unlike previous vehicles in the series, the fund will take a structured investment and a solutions-based approach, sources said.

It will consider investing in a variety of property types, including logistics and residential, where Invesco’s local teams are able to provide information, sourcing and execution advantages.

Invesco declined to comment.

To read the latest edition of the latest IPE Real Assets magazine click here.