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Europa makes first deal from latest fund – Exclusive

The London-based private equity real estate firm’s latest transaction also marks its first since the outcome of the EU referendum in the UK. 


Europa Capital, the London-based private equity real estate firm, has acquired a prime residential building in Madrid – thought to be the first transaction from its latest pan-European investment fund.

The €25 million transaction was understood to have been made via the firm’s fifth European-focused value-add vehicle, Europa Fund V. The 69,500 square foot property, General Martinez Campos 19, is to be refurbished in partnership with Madrid-based real estate firm Richelieu Developments, to provide 33 luxury homes complete with leisure facilities.

Fund V was launched in September last year, following the hire of Schalk Visser as partner and head of equity, with an original target of €750 million. In April, the firm held a first close after reaching €360 million but it is understood the fund now has total firepower of €1 billion, including debt. Europa declined to comment on the fundraise

A spokesman for Europa said the firm had been awaiting the outcome of the UK referendum, and is now taking advantage of the post-Brexit “adjustment.”

“The market uncertainty following the UK referendum result will lead to exciting investment opportunities and underlines the importance of Europa’s asset focused strategy of adding real value by making physical improvements to buildings,” said Jason Oram, head of Southern Europe at Europa Capital. “This investment builds on Europa’s strong experience in the Spanish prime residential sector, which to date has been focused on Barcelona,” he added.

Marcus Donaldson, co-founder of Richelieu Developments, said: “The building provides a rare opportunity to refurbish comprehensively a well-located building in a sought-after neighborhood of Madrid, to provide luxury apartments with amenities that will appeal greatly to high-net-worth domestic and international buyers.”

Europa held a final close on the predecessor vehicle, Fund IV, in 2012 after garnering €604 million in capital commitments. The fund is now largely deployed following the May purchase of the 5 Quai Marcel Dassault office building in Paris’ La Defense financial district. Through the fund, Europa has also picked up assets in the UK, Denmark, the Netherlands, Spain and the Czech Republic.

Spanish property investment advisory firm Doble Digito advised Europa on the acquisition.