Harrison Street has reached 75% of its fundraising target for its second European real estate and expects a final close within the next three months.
Rob Mathias, a senior managing director at the company, told IPE Real Assets that Harrison European Property Partners II, which was launched last year, had signed commitments for around three-quarters of the planned fundraising size.
“We are seeking total commitments of €400m to €450m,” he said. “If we desire to, the fund can have commitments as much as €500m.
“Our expectation is that we will have a final closing sometime this summer.”
The amount raised so far includes a €51m contribution from Texas Permanent School Fund. The pension fund said in a meeting document that it has agreed to make the investment based on the recommendation of its real estate consultant, Courtland Partners.
According to Texas Permanent, Harrison Street’s $235m (€203m) European Partners I has so far exceeded return expectations.
European Partners II will focus on acquisitions and developments in student accommodation and specialist residential sectors in Europe.
“We have closed on transactions for the fund totalling €120m of the commingled fund’s equity,” Mathias said. “These deals have involved assets that are located in both the UK and Ireland.”
The fund will use leverage of between 65% to 75% to acquire assets over a three-year investment period.