Global real estate investment manager Invesco announced on Wednesday that it has raised €550 mln in the third close for its European Value-Add Fund II (EVAF II).
The equity commitments were raised from 18 European, UK and US investors, with 90% of investors from the fund’s predecessor committing to the second fund. The vehicle is targeting a hard cap of €750 mln, which with leverage would give it a spending power of €1.9 bn to be deployed into its pan-European value-add programme. The final close of EVAF II is expected to be held in the summer.
EVAF II’s strategy is largely a continuation of that implemented in the first fund in the series, focusing on Europe’s most liquid markets where Invesco’s value-add team employs active asset management across sectors to deliver properties for exit into the core market. This strategy has resulted in EVAF I generating gross returns since inception of 22%.
With a portfolio to date of four investments in the logistics and residential sectors in Central Europe, Italy and Spain, the Fund intends to invest its remaining 82% of dry powder over the next three years into opportunities created by changing market conditions, including the impact of Covid 19.
‘Covid-19 is redefining, for instance, what investors and tenants wish to acquire and occupy, and the fund intends to position itself as one of the first to respond to those changes,’ said Kevin Grundy, managing director – Fund Management at Invesco.
