JER Partners raises €800m for third Europe fund

The US firm has raised a fund six times larger than its predecessor vehicle focused on European real estate.

McLean, Virginia-based JER Partners, the global real estate investment arm of the J E Robert Companies, has closed its third European fund with equity commitments of €809 million ($1 billion).

JER Europe Fund III is focussing on undervalued assets and value-added opportunities across all asset class sectors throughout the continent. With leverage, it is expected to have total buying power of up to €4 billion making it one of the largest funds targeting the region. It easily surpasses the size its second European fund, which closed in January 2004 on €123 million.

In a statement, the company said it has so far committed to 13 transactions for around €786 million. It has acquired the Great Eastern Hotel at Liverpool Street station in London as well as a residential site in Greenwich to the south east of the city. One of the latest announced deals was in December when it revealed the €39 million acquisition of a portfolio of five retail showrooms in Italy and a 50-percent stake in the Manotel hotel chain in Switzerland. Other investments have taken place in Germany, France, Belgium and Turkey.

In a statement, Joseph Robert, chairman and chief executive officer, said the company would continue to expand into new territories and new product classes. He also hinted at a presence in South America. The firm is rumoured to be raising a fund focused on real estate opportunities in Brazil.

Robert said: “With real estate investment platforms in North America, Europe, Russia and soon also in Latin America, I believe JER is well-positioned to capitalize on real estate opportunities wherever they present themselves.”
The firm’s European operation is being run out of London and is headed by Malcolm Le May

In Russia it has set up the Marbleton Property Fund, a joint venture focussed on Russia with Moscow-based Alfa Capital Partners.