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GreenOak raises EUR911 million and exceeds target for European real estate strategy

25 April, Property Funds World

The Euro-denominated GreenOak Europe Fund II (Fund II) is fully discretionary and has the ability to acquire assets in Western European countries including Spain, Italy, France, Holland, UK, Germany, Portugal and Ireland.

The Fund comprises institutional investors from North America, Europe, Asia and the Middle East, representing large corporate and government pension funds, endowments, foundations, and institutionally-managed family offices. In addition to Fund II’s raised EUR656 million of capital, GreenOak has invested or committed a further EUR185 million of Fund LP co-investment capital and has an additional EUR70 million of committed discretionary Fund LP co-investment capital to deploy into this strategy.

Fund II can acquire or develop real estate with a cost of EUR2.6 billion (with leverage of up to 65 per cent) and is focusing primarily on logistics, office, and residential assets, as well as land for development. To date, the Fund and co-investors have committed over EUR567 million of equity across more than 20 transactions in Spain, Italy, France and the Netherlands, totalling over EUR1.8 billion in value.

The majority of Fund II’s portfolio has been sourced and acquired off-market at discounts to market price and replacement cost and deployed in gateway cities in Europe, namely Madrid, Milan, Barcelona, Paris, as well as Europe’s key logistics nodes. Fund II’s logistics exposure reflects GreenOak’s long-running conviction towards these assets in Europe, having now acquired over 21 million square feet and EUR1.3bn in aggregate cost.

This close forms part of GreenOak’s growing European real estate strategy, following GreenOak Europe Fund I, which was invested between May 2015 and July 2016 exclusively in Spanish and Italian assets and has already returned 75 per cent of its called capital having utilised only 50 per cent leverage.

John Carrafiell (pictured), co-founder of GreenOak, says: “We are still in the middle innings of the deep-value opportunity in select European markets with motivated sellers, such as banks, insurance companies, government entities, funds winding-down and liquidity-driven sellers, driving many of our acquisitions.”

“We believe our differentiated mid-market focus and direct asset and property management expertise, have established GreenOak as a reliable counterparty for sellers, lenders, developer-partners and tenants in our target markets.”

“As our investment pace has remained similarly disciplined from Fund I to Fund II, this capital-raise underscores strong institutional support for both our specific European strategy and our disciplined deployment – and importantly return – of capital for our investor partners.”

Source: Property Funds World


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