Alternative real assets investment manager Harrison Street has announced the final close of its third European alternative real estate fund, Harrison Street European Property Partners III, which raised over €800 mln of equity, including co-investment vehicles, from over 25 institutional investors around the globe.
Fund III is approximately 75% committed to date and includes a life sciences portfolio of over 2 million sq ft, making Harrison Street one of the largest private real estate owners of life sciences assets in the UK. Additional Fund III investments include build-to-rent and student accommodation in the UK, Ireland and Spain.
Launched in 2015, Harrison Street’s European strategy encompasses alternative investments in student accommodation, build-to-rent residential, and life sciences real estate. The firm’s European team is based in London and includes over 40 dedicated professionals.
In this time, the firm has acquired or developed 70 assets, including over 18,000 student accommodation beds and 2,600 residential units, in partnership with 14 operating partners in the UK, Ireland, France, Germany, and Spain.
Additional investments in the near-term pipeline are anticipated to expand the firm’s footprint to the Netherlands, Denmark, Italy and Portugal.
Paul Bashir, Chief Executive Officer of Harrison Street Europe, said, 'As a leader and first mover in European alternative real estate, Harrison Street has developed a diverse portfolio across our primary sectors and geographies by drawing on our world-class investment team, deep relationships, and global sector expertise. The successful closing of Harrison Street European Property Partners III, Harrison Street’s largest European-focused fund, amid the global pandemic, reflects the resiliency of our asset classes, the strength of our investment platform, and confidence placed in us by our global investors, both existing and new.'
Christopher Merrill, Harrison Street’s co-founder, Chairman and Chief Executive Officer, added, 'We are grateful for our investors’ strong support as we continue to execute on the significant opportunities in front of us and pursue consistent performance across the portfolio throughout market cycles. We have built an exceptional team on the ground in the UK and across continental Europe and are very focused bringing the full resources and expertise of the firm to realize the significant potential embedded in our pipeline in the coming years.'
Harrison St's first alternative European fund, a 2015 vintage, is under contract to sell its remaining seven assets in the coming weeks. 'This will result in that fund being fully realized ahead of schedule and with projected returns well ahead of target,' Bashir said.
During 2021, Harrison Street had its most active and diverse investment year on record including $15 bn of gross cost across 264 assets. The firm also received strong support from its global institutional investor base with over $5.8 bn of capital commitments raised across its strategies.
