Standard Life Investments has completed the final close for its second European Real Estate Club, raising over €391 mln of equity or the maximum target set for the fund.
Standard Life Investments has completed the final close for its second European Real Estate Club, raising over €391 mln of equity or the maximum target set for the fund.
The new Standard Life Investments European Real Estate Club L.P. II (Euro Club II) raised the equity from 10 investment groups from five countries: the UK, the Netherlands, the US, Canada and Saudi Arabia.
The Club will have an investment capacity of up to €790 mln once the 50% target gearing is deployed. The seven-year, closed-end real estate investment vehicle focuses on commercial property in core markets – specifically France, Germany, Benelux and Scandinavia.
At final close, the Club had already completed the acquisition of six high quality assets, representing 35% of total equity available. It bought an office in Paris, France; the Hanse Forum office in Hamburg, Germany; the Von-der-Tann office scheme in Nuremburg, Germany; the Regina retail and office property in Aarhus, Denmark; a logistics facility in Dusseldorf, Germany and an office in Aarhus, Denmark.
'The investment thesis that underpins our first European real estate club has received tremendous support and we are delighted that most of our initial Euro Club investors decided to commit additional capital to this new vintage, along with a significant number of new international investors,' said Daniel McHugh, head of Continental European real estate and fund manager for the Club.
'Our strategy is to deliver value-add returns from mispriced core quality real estate with measurable and manageable risk attached. The first Euro Club was fully invested within six months of the final close. For Euro Club II we already have an extensive deal pipeline that continues to build, given the momentum we have been able to establish in this extremely competitive market,' he said.
Standard Life's first €308 mln Euro Club fund completed its final close in October 2014. This vehicle is now fully committed, having secured a total of 10 deals to date.
