GreenOak hits €250m hardcap for Spain-focused fund

The London-based private equity real estate firm smashed its €100 million-€150 million target for its first European fund.

GreenOak Real Estate, the private equity real estate firm, has hit the €250 million hardcap for its first European fund – the Continental European Private Equity Real Estate Fund – which will focus largely on Spain.

GreenOak has a target portfolio leverage at 65 percent, giving the firm firepower of more than €700 million. In addition, GreenOak is open to co-investment with investors, further increasing the fund’s overall investment capacity.

The firm has already acquired or has committed to acquire approximately €325 million of assets, and primarily targets logistics, office, retail, and residential; but can also invest in land with planning for development.

Geographically, GreenOak will focus primarily on the greater Madrid area, but the fund will also be targeting Barcelona, and other large Spanish cities. The firm also expects to make its first acquisition in Italy using capital from the fund.

“In our opinion, Spain, along with Italy, continues to be amongst the best distressed, deep value real estate opportunities in Europe, if not the world, combining deep value from forced sellers — with strong economic growth and recovery,” commented John Carrafiell, Europe-based co-founder of GreenOak.

“We focus on well located, quality buildings in need of recapitalization and hands-on repositioning management. We close deals as small as €8-25 million, which isn’t the target of most funds or the listed Socimis.”

To date, GreenOak has used the fund to acquire: nine assets totaling 2.1 million square feet of occupied space, built on more than 4.3 million square feet of land in Madrid’s logistics corridors; a 172,000 square foot shopping center in greater Seville; five class A office buildings in Madrid totaling 296,000 square feet; an approximately 80,000 square foot high street retail-led building in Madrid; a recently built Barcelona office building of approximately 107,000 square feet; and 645,000 square feet of planned logistics development in a Madrid logistics corridor.