Long Harbour, the real estate and asset-backed investment manager, has launched its European ground lease fund, a new vehicle that will invest in ground leases on residential and commercial real estate assets across Europe.
The Long Harbour Euro Secured Income 1 Fund (LHESIF 1) will be managed by Richard Silva.
Long Harbour said has an initial €30 mln to deploy through the new fund, and a further €370 mln committed from investors, bringing the total available to €400 mln. The vehicle will target ground leases in strong European markets, including Germany and Ireland, and across all asset classes.
'Our first dedicated European ground lease fund will target commercial real estate assets in high-performing European markets,' said Silva. 'We will provide residential landowners with a new source of finance by investing in their ground leases, unlocking the value of their land. This approach will allow landlords to concentrate on their buildings and occupiers.'
Silva added: 'We know that the ground lease model works well in the UK and US, and we believe there is significant demand emerging within Europe.'
Long Harbour’s European ground lease fund will separate the ownership of land from the property that sits on it, allowing landowners and asset managers to finance their commercial buildings. The fund meanwhile offers investors access to a long-term investment vehicle in a low risk asset class, according to the firm.
The news follows Alpha Real Capital's recent launch of a European long income fund focusong on commercial ground rents and amortising leases.