London-based private equity real estate firm Clearbell Capital has held a final close for Clearbell Property Partners II, its second opportunity fund, on £400 million (€508.63 million; $653.6 million).
The firm said the UK-focused vehicle had been oversubscribed by £100 million as its original equity target was £300 million. Fundraising began last year.
A further £97 million has been raised for coinvestments.
The capital raised for the fund represents more than 40 commitments from investors in Australia, South Africa, USA, Canada and Europe, including pension funds, not for profit organizations, fund of funds and high net worth investors.
“We are thrilled with the result of this oversubscribed fundraise,” Manish Chande, senior partner at Clearbell Capital said in a statement. “It means that with co-investment and leverage, we have in excess of £1 billion of property investment firepower.”
The firm has so far invested £126 million of the equity raised through the fund across five investments in the UK, it said. So far, the transactions include the acquisition of six office buildings located in the southeast of England, investments with London-based lender Pluto Finance for a platform providing finance for housing developments in the UK, the acquisition of a shopping centre in Durham, and the launch of a logistics platform comprising six assets made last year.
Earlier this year in February, the firm along with Morgan Stanley Alternative Investment Partners Real Estate purchased the corporate entity holding 3, 4 and 5 Harbour Exchange, offices in London, from UK REIT Land Securities.
Formerly known as Mountgrange Investment Management LLP, the firm was launched in 2007 by senior partners Manish Chande and Martin Myers. It was later renamed Clearbell Capital in 2012 following Myers’ departure.