Real estate investment advisor BGO has raised €2.0 bn for its European investment program as part of its fourth European value-add strategy.
This brings the total amount raised for the fund to €1.46 bn, with an additional €520 mln committed through co-investments in high-quality industrial and data centre platforms in Europe.
BGO's European value-add strategy has now raised four funds, totaling over €4 bn since 2014.
The value-add fund will focus on real estate sectors with strong growth potential, such as residential, logistics (including cold storage and urban logistics), and data centres. The team will also seek to invest in assets that are currently undervalued due to cyclical challenges.
BGO will identify undervalued or poorly managed properties in key European markets, working to improve these assets and turn them into high-quality investments with stable returns.
John Carrafiell, co-CEO, BGO, said: ‘BGO’s European Value Add series has now successfully navigated multiple cycles over more than a decade, with Fund IV being our largest raise yet and well positioned to take advantage of this current cycle. Building vertically integrated capabilities across multiple countries and having the skills to invest in leading operating companies and platforms, like data centre company Bulk Infrastructure and developer and contractor Techbau, has given our European strategy a unique edge.’
Toby Phelps, managing partner, and head of European Equity at BGO, commented: ‘Our European Value Add fund franchise continues to attract strong support from existing and new investors. BGO’s ability to navigate changing market circumstances, manage risks and capture opportunities across the key markets in Europe has contributed to developing strong, long-term relationships with our investors. Our fourth European Value-Add strategy retains significant dry powder to capitalize on the strong opportunity in European real estate as markets enter a period of greater stability and growth prospects.’
Francesco Ostuni, managing partner, and European CIO, BGO, added: ‘We are pleased with the support received for our European Value Add franchise. The strategy’s relative performance and track record in offering attractive co-investment opportunities in best-in-class and scalable platforms have resulted in more than 80% of the investors in this new fund being comprised of existing investors who continue to partner with us, as well as a number of new strategic relationships.’
