Private equity firm Carlyle Group has confirmed that its EUR 9bn European real estate fund, Carlyle Europe Real Estate Partners III (CEREP III), is looking at buying distressed property in countries most affected by the credit crunch, notably the UK, Ireland and Spain.
Private equity firm Carlyle Group has confirmed that its EUR 9bn European real estate fund, Carlyle Europe Real Estate Partners III (CEREP III), is looking at buying distressed property in countries most affected by the credit crunch, notably the UK, Ireland and Spain.
'We will definitely consider opportunities in all European markets including Ireland, providing they fit with our investment criteria and there is a clear opportunity for us to create value,' Carlyle's UK managing director and head of European Investment Robert Hodges told Irish newspaper the Sunday Independent.
'Like the UK and Spain, Ireland has seen a more severe correction than the rest of Europe as a result of the credit crunch,' Hogan said. 'We believe that in these markets, sellers' expectations will soon align to the prices that buyers are prepared to pay and that a fund of the scale of ours will be in a good position to find attractive investment opportunities which might not have been available a year ago.'
Carlyle announced in early June that it had raised equity of EUR 2.2bn for the third closing of the CEREP III fund. The raised equity far exceeded the initial target of EUR 1.5bn, underscoring the ongoing strong demand for pan-European real estate investment vehicles, Carlyle said. It added that the fund has already committed to EUR 715mln worth of acquisitions across 10 assets. With leverage, the fund will have a war chest of EUR 9bn to invest across Europe.
