CBRE Global Investors has held the final close for its latest European value-add fund, Europe Value Partners 2, raising €1 bn of equity commitments.
The vehicle, which initially launched in spring 2017, raised the capital from a group of institutional investors from Europe, North America, Asia and the Middle East.
It is believed to have a larger exposure to the logistics sector compared to its predecessor EVP1, which raised $840 mln in 2016 and targeted a 50-50 exposure to the logistics and retail markets.
EVP2 pursues a reposition-to-core and develop-to-core strategy and has the ability to invest in all sectors with a Pan-European remit, which includes the UK. However, it is currently focusing on the Continent while taking a 'watch and see' play on the UK, which was EVP1's main market.
Los Angeles-based CBRE GI is expected to resume investments on the island through the fund once a decision over Brexit has been made, potentially later this year.
'This has been a truly global effort with capital raised on three different continents. We are delighted to receive this support from investors of such diverse geographies,' said Charles Baigler, fund manager for Europe Value Partners. 'We launched the Europe value-add series three years ago and have demonstrated our ability to create value in the European market.'
EVP 2 has already deployed around €200 mln of equity across three transactions in Spain, Denmark and France, with a further investment due to close imminently.
In Denmark it bought a building at Vimmelskaftet 39-41, Copenhagen, with 3,070 m2 of rentable space across two retail units, a restaurant and office space. The investment was made through a joint venture with Portus Retail.
In Spain, the vehicle partnered with Spanish logistics developer Montepino to build around 500,000 m2 of prime assets initially focused on the greater Madrid market.
The joint venture has been launched with four development projects located in prime logistics locations along the Corredor de Henares and two standing assets in Zaragoza totaling 245,000 m2. The portfolio is 80% pre-let.
