Private equity investment firm Ardian has raised €1.2bn for its second European real estate fund, AREEF II.
The fund will invest in commercial property assets, mainly in office buildings in strategic locations in Europe.
AREEF II, which met its initial target size, represents an increase of more than 60% on Ardian Real Estate’s inaugural fund, AREEF I, which totaled €737m. The fund also saw a re-up rate of 84%.
AREEF II, which is already more than 50% deployed, will invest in assets valued between €50m and €250m, capitalizing on the long-term structural changes of working trends.
Ardian Real Estate will use its operational capabilities to transform obsolete assets into “Green+” assets, which means with strong sustainability credentials, answering the new needs of tenants in key city-centers across Europe, Ardian said.
“Companies have been re-thinking ways of working for a number of years, but this shift was accelerated by the pandemic. It brings significant opportunities for real estate investors. Tenants are increasingly demanding high-quality and green spaces in strategic locations with strong sustainability credentials or what we call “Green+” buildings. With our expertise and now proven track record in the market, our “Build-to-Green+” strategy ensures our investments meet the needs of the workforce of the future,” said Stéphanie Bensimon, Head of Ardian Real Estate.
The fund has already deployed significant amounts of capital, with more than half of the fund invested or under investment in the core markets of France, Germany, Spain and Italy.
AREEF II has already performed 11 transactions, including one exit, and manages over 230,000sqm across 8 European cities.
“Not only does this fundraise show the resilience of European real estate, it is a significant moment for Ardian Real Estate. Following the success of our investments from the first fund, delivering strong returns to our investors, this second-generation fund has seen an even stronger response from investors and we see significant opportunity for creating value ahead,” added Stéphanie Bensimon, Head of Ardian Real Estate.