JP Morgan Asset Management has announced the final closing of its European Opportunistic Property Fund IV with $1.3 bn (€1.18 bn) in equity capital from a broad range of global international investors providing a total investment capacity of $5.3 bn.
The fund, which was oversubscribed by 47%, is the fourth in a series of European opportunistic real estate closed-end vehicles from JP Morgan Global Alternatives, a $135 bn in assets-under-management platform spanning real estate, infrastructure, transportation, hedge funds, private equity, private credit and liquid alternatives.
The vehicle is focused on investing in a portfolio of wholly-owned investments and joint ventures in the office, retail, industrial and residential sectors across the European Union, with emphasis on the UK, France and Germany. It has already committed to transactions representing over 21% of investor commitments. Funds I, II and III in the series have delivered total returns in excess of target on realized investments.
'We continue to see allocations to alternatives grow significantly as investors seek out uncorrelated and high relative value returns,' said Anton Pil, managing partner of J.P. Morgan Global Alternatives. 'Late cycle, discerning investors are expressing strong confidence in tested and proven alternatives managers with the ability and agility to deliver across market environments.'
'In the face of Brexit, trade wars and varying degrees of political and economic turmoil, we are not relying on macroeconomic tailwinds in European real estate to drive returns. Instead, results will be achieved by identifying mispriced and/or underinvested assets, curing their ills through intensive asset management and delivering high quality properties that credit tenants and core investors are seeking,' added Peter Reilly, CEO and head of Real Estate Europe for JP Morgan Asset Management.
