Europa Capital in first core-plus foray – Exclusive

The London-based firm looked to Munich for its debut core-plus deal, executed on behalf of Mitsubishi.

Europa Capital has inked its first deal through the firm’s new core-plus platform, PERE has learned.

The London-based private equity real estate firm bought a 237,000 square foot office property in Munich located at Feringastrasse 10-12. Built in 2003, the property is 88 percent occupied, with rents below market levels, according to Europa.

Ekistics Property Advisors, a London-based fund manager, sold the vehicle on behalf of its value-added fund, Ekistics Real Estate Partners I.

Europa purchased the property on behalf of Japan’s Mitsubishi Estate, which owns a majority stake in Europa through its subsidiary, New York-based Rockefeller Group.

“This off-market acquisition marks the beginning of a new product line in a lower risk area from our pan-European value-add funds,” said Nic Fox, Europa’s head of Germany. “We strongly believe in the continuing performance of the German economy and property market and intend to assemble a diversified portfolio, attractive to institutional investors.”

Through its new core-plus platform, PERE understands Europa plans to invest first in Germany and then in other core European office markets.

A spokeswoman declined to comment on fund specifics.

Europa is best known for its series of value-added funds. The firm is currently fundraising for Europa Fund V, which was launched in September 2015 with a €750 million target, according to PERE data.

In August, the firm announced a raft of promotions ahead of a fundraising push, most notably the naming of James Fortescue and Hugo Black as partners, PERE previously reported. Fortescue is focusing on the Benelux region, as well as the UK office and industrial sectors, while Black is tasked with overseeing the Nordics and UK residential and retail sectors, among other strategies.

In addition to these appointments, three other executives, Jonathan Mansie, James Pennington and Carolyn Medwynter, were promoted to director.