BentallGreenOak (BGO), the global real estate investment management advisor and provider of real estate services, has announced the successful final close of its third European value-add fund with a total of €1.468 bn in commitments.
The fund surpassed its initial target of €1 bin by over 45%. An additional €450 mln in co-investments bring the war chest to €1.9 bn.
More than 50% of the fund’s capital has already been deployed through 27 investments made across the UK, Germany, France, Italy, Spain, the Netherlands, Norway and Denmark.
Toby Phelps, managing partner and head of European equity at BentallGreenOak said: '“We are thrilled to see such support for our latest European value-add fund.
'We have teams located on-the-ground in all key European markets with an extensive track record in acquiring, developing and managing assets. Their expertise and solution-oriented approach makes BGO a preferred counterparty in those markets.
'Our team’s professionalism, focus and commitment is the reason for our successful track-record and sustained interest from new and existing investors.'
This is the third fund in BentallGreenOak’s European value-add strategy, which has invested over €2 bn since 2014. Fund II, which closed in 2019, has already returned 80% of its capital to LPs.
The fund will be largely focused on sectors that are benefitting from structural growth in demand, specifically logistics, including cold storage and urban logistics, life sciences and data centres, as well as those that are experiencing cyclical challenges that are impacting values.
The team will seek to apply its deep asset management expertise to transform under-valued or under-managed assets in well-established locations into core quality investments with high stabilised yield on all-in cost.
Francesco Ostuni, managing partner and European equity chief investment officer at BentallGreenOak, added: 'Since our first fund in 2014, we have been laser focused on delivering attractive risk-adjusted returns to our investors whilst utilising prudent levels of leverage in the 50-60% range.
'We have built up significant expertise across all major asset types but specifically logistics which forms 70-80% of our investing activity today.
'This outstanding outcome is the result of our European team’s ability to consistently deliver on our strategy and realise performance for our investors. We look forward to continuing our strong track record with this fund.'
