Europa closes fifth fund just ahead of target – Exclusive

The London-based firm garnered more than 50% of its commitments for the value-added vehicle from existing investors.

Europa Capital has raised €716 million for its latest value-added fund and associated co-investment vehicles, PERE has learned.

The firm launched Europa Fund V with a €700 million internal target in September 2015, following the hire of Schalk Visser as partner and head of equity. Europa held a first close in April 2016 on €360 million, PERE previously reported.

The predecessor vehicle closed on €604 million in June 2014, and the firm had returned about 50 percent of Fund IV’s investor capital by the end of 2017, according to its website.

Fund V’s 17-member investor base comprised predominantly private and public pension plans, with investors from Europe, North America and Australia. About 50 percent of the vehicle’s commitments came from returning investors, such as the Missouri Local Government Employees’ Retirement System and the San Diego City Employees’ Retirement System, which each committed to both Funds IV and V, according to PERE data.

Europa set a €1 billion hard-cap for Fund V and planned to co-invest up to €50 million of the fund’s total commitments, according to March 2016 documents from SDCERS. The vehicle has a four-year investment period, up to 65 percent leverage and is targeting a 15 percent net internal rate of return. Europa is charging a 1.5 percent management fee on committed capital.

The firm has a pan-European investment strategy for the fund series. Europa has completed 10 investments in six countries through Fund V, committing over 40 percent of its capital, a source with knowledge of the fundraising process said. The fund’s geographic focus is mainly in the UK, France and Germany, but also includes smaller markets such as Denmark, Poland and Spain. The firm is targeting traditional property types for Fund V, with about 75 percent of its investments to date allocated to office and residential, with the remainder going to hospitality and other sectors.

Europa’s first purchase using Fund V capital came in July 2016 with the acquisition of General Martinez Campos 19, a 69,500 square foot Madrid residential building, PERE reported.

New York-based Park Hill Group worked as the placement agent for Fund V, according to SDCERS documents.

Since 1995, Europa has raised nine real estate funds and committed to over 124 transactions totaling more than €10.4 billion across 19 European countries. The firm launched a core-plus platform last year, inking its first deal in June, PERE previously reported.