Chicago-headquartered alternative real estate investment firm Harrison Street has announced the final close of its second European closed-end fund, Harrison Street European Property Partners II, at €500 mln in equity commitments.
The figure was in excess of its target of €400 mln, the firm said. Harrison Street also raised an additional €200 mln of equity capital in a co-investment vehicle.
In total, the equity provides over €2 bn in buying power, according to the firm. Both Fund II and the co-investment vehicle were backed by existing Harrison Street investors and new investors, and both were oversubscribed.
'Harrison Street entered the European market in 2015 to address a clear and unmet need as cities with large student populations were unable to keep up with the demand for high-quality purpose-built student housing,' said Rob Mathias, senior managing director and head of international at Harrison Street.
'In that time, Harrison Street has developed a robust pipeline of opportunities, committed to investments totaling approximately €1.2 bn in gross asset value and established itself as a partner of choice for the leading developers and managers of student housing as well as specialty residential properties across Europe.
'Looking ahead, supply remains constrained and we will continue to build scale and deepen our relationships with leading universities and development partners to address the growing need for high-quality accommodations among underserved populations,' Mathias added.
Fund II, like its predecessor, will focus on student accommodation in the UK, Germany, Ireland, France, Spain, the Netherlands and the Nordics. It is also targeting investments in specialty residential properties, including micro-living and private rental units, Harrison Street said.
To date, Fund II has committed more than €400 mln in equity across 24 assets in Europe.
