King Street Capital Management has raised $950m (€807.4m) for its latest European real estate fund.
The investment firm said its European Real Estate Special Situations Fund II (ESS II) fund, which hit its hard cap target in just 12 months, attracted a globally diversified investor base across North America, Europe, Asia and the Middle East.
King Street said 50% of the commitments to ESS II came from re-ups of the firm’s predecessor ESS vehicle and existing King Street real estate investors.
ESS II seeks opportunities where conventional capital is less available, aiming to acquire institutional-grade real estate at attractive valuations.
The fund provides flexible, asset-specific capital solutions and will invest in core Western European markets. Its focus is on high-quality assets considered temporarily undervalued due to market illiquidity, rather than underlying fundamentals.
Brian Higgins, founder and managing partner of King Street, said: “The strong investor demand for ESS II reflects confidence in King Street’s ability to deliver innovative financing solutions in a market where transparency and liquidity remain scarce. “Amid historic dislocation, we see a clear path to recovery and believe ESS II is well-positioned to capitalise on a generational opportunity in European real estate.”
Paul Brennan, partner and co-head of real estate responsible for leading the European business at King Street, said: “Our strategy focuses on the intersection of quality and complexity, providing capital solutions for trophy assets trading below intrinsic value due to market stress.
“As traditional lenders pull back and capital remains scarce, we’re able to deploy flexible capital and access landmark assets through proprietary, off-market channels.”
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