GreenOak Raises €650 Million to Invest in Real Estate

27 April 2018

The real estate investor GreenOak has finalised the closing of its second European real estate vehicle, GreenOak Europe Fund II, with an eye mainly on Spain. Thus, with a total of 656 million euros of committed capital, the firm has exceeded its goal of raising 500 million euros and expects to allocate at least 60% of the total to real estate purchases in Spain.

The rest of the money will be invested in real estate opportunities in other Western European countries such as Italy, France, the Netherlands, the United Kingdom, Germany, Portugal and Ireland.

The capital comes from institutional investors in North America, Europe, Asia and the Middle East; notably from large corporate and government pension funds, endowments, foundations and institutional family offices.

In addition to raising 656 million euros for its Europe Fund II, GreenOak committed another 185 million euros of co-investment capital from investors in the fund and had another 70 million euros of additional co-investment capital to deploy in its European strategy.

This way, the new fund, which can leverage itself up to 65%, will have the capacity to acquire or develop real estate in the amount of 2.600 billion euros.

The vehicle is eying offices, logistics assets, residential projects, commercial and hotel assets, as well as land to develop. The fund specialises in value-added operations.

Almost €600 million in 20 transactions

To date, the fund and its co-investors have committed more than 567 million euros in more than 20 transactions in Spain, Italy, France and the Netherlands, for a total value of more than 1.8 billion euros. According to the company, “the majority of the portfolio has been acquired in off-market operations with discounts with regards to the market and replacement prices and has been invested in cities considered gateways in Europe, specifically Madrid, Milan, Barcelona and Paris, as well as key logistics nodes in Europe. ”

This fund is part of GreenOak’s growing European real estate strategy, after the first fund (GreenOak Europe Fund I) invested in Spanish and Italian assets between May 2015 and July 2016. The fund has already returned 75% of the capital committed achieving leverage of 50%.

Since 2011, GreenOak has raised 6.500 billion euros from institutional investors for loans and real estate investments in Europe, the United States and Asia.

Original Story: ElEconomista.es – Alba Brualla

Translation: Richard Turner