GreenOak raises €911m for European real estate strategy

Real estate investment manager GreenOak has held a final close of its second European Fund, GreenOak Europe Fund II, totalling €656 mln of equity commitments and exceeding its target of €500 mln.

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, the 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 €656 mln of raised capital, GreenOak has invested or committed a further €185 mln of co-investment capital and an additional €70 mln of committed discretionary co-investment capital to deploy into this strategy.

Fund II can acquire or develop real estate with a cost of €2.6 bn (with leverage of up to 65%) 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 €567 mln of equity across more than 20 transactions in Spain, Italy, France and the Netherlands, totalling over €1.8 bn 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. The fund has a strong exposure to logistics which encompass over 21 million sq ft with €1.3 bn 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% of its called capital having utilised only 50% leverage.

John Carrafiell, co-founder of GreenOak commented: '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.'

He added: '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.'

GreenOak Real Estate is an independent, partner-owned, real estate-focused investing and lending firm with offices in London, Madrid, Milan, Luxembourg, New York, Los Angeles, Tokyo and Seoul.

GreenOak’s Europe Fund I raised equity of €321 mln. The fund invested during a 15-month period closing 21 separate transactions, acquiring 622,000 m2 of logistics, retail, office and residential assets in Spain and Italy representing €580 mln in aggregate purchase price.


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