BentallGreenOak has raised €1.9 billion for its third European value-add fund.
The fund exceeded its initial target of €1 billion by over 45%, with €1,468 billion in commitments from institutional investors, and €450 million in commitments for closed co-investments in Italy and the Nordics.
BentallGreenOak said more than 50% of the fund’s capital has already been deployed through 27 investments made across the UK, Germany, France, Italy, Spain, the Netherlands, Norway and Denmark.
This is the third fund in BentallGreenOak’s European value-add strategy, which has invested over €2 billion since 2014. Fund II, which closed in 2019, has already returned 80% of its capital to LPs.
“We are thrilled to see such support for our latest European Value-Add fund”, said Toby Phelps, Managing Partner and Head of European Equity at BentallGreenOak. “We have teams located on-the-ground in all key European markets with an extensive track record in acquiring, developing and managing assets. Their expertise and solution-oriented approach makes BGO a preferred counterparty in those markets. Our team’s professionalism, focus and commitment is the reason for our successful track-record and sustained interest from new and existing investors.”
”The fund will be largely focused on sectors that are benefitting from structural growth in demand, specifically logistics, including cold storage and urban logistics, life sciences and data centres, as well as those that are experiencing cyclical challenges that are impacting values,” said BentallGreenOak in a statement.
“Since our first fund in 2014, we have been laser focused on delivering attractive risk-adjusted returns to our investors whilst utilising prudent levels of leverage in the 50-60% range. We have built up significant expertise across all major asset types but specifically logistics which forms 70-80% of our investing activity today. This outstanding outcome is the result of our European team’s ability to consistently deliver on our strategy and realise performance for our investors. We look forward to continuing our strong track record with this fund,” said Francesco Ostuni, Managing Partner and European Equity CIO at BentallGreenOak.
“We have made a significant commitment to growing our presence in Europe over the last decade, enhancing and expanding our team’s operating capabilities to complement our asset management and investing platform. The team’s operating capabilities are underscored by having leased over 14 million square feet in the past 3 years, and having developed or currently having under construction over 25 million square feet across 7 countries within the same period. Since inception, we have built internal operating capabilities, particularly in all types of logistics, controlling asset risk, leasing and tenant relationships rather than operating as a capital allocator,” said John Carrafiell, Senior Managing Partner at BentallGreenOak.