JP Morgan smashes European fundraising target

The New York-based investment manager has raised nearly €750 million for its third closed-end European property fund.

JP Morgan Asset Management, the investment management businesses of US bank JP Morgan, has smashed through its fundraising target for its latest European property fund, collecting nearly €750 million.

For its third closed-ended European real estate fund, the investment manager closed on €746.6 million, which is 25 percent above the target capital raise.

The firm is expected to acquire up to €3 billion of office, retail, industrial and residential properties in core European markets where intensive asset management strategies can substantially enhance value.

“We are not making macro bets on the region’s economy. Our focus is on asset selection where we can drive results with refurbishment, leasing and change of use,” said Pete Reilly, chief executive and head of real estate Europe for JP Morgan Asset Management – Global Real Assets.

The firm has already invested €219.8 million of the fund in six transactions in Berlin, Paris, southeast England, Cologne and Hanover representing 29.4 percent of the fund’s total commitments.

Speaking at a European Association for Investors in Non-Listed Real Estate Vehicles (INREV) conference in New York in September, Joe Valente, the London-based managing director of JP Morgan Asset Management, said Western European nonprime markets with exit opportunities in stable countries – cities like Manchester, Cologne and York – are a good bet.

“They don’t necessarily grab the attention of international capital, but they’re nevertheless the sort of markets where the average domestic investor will be investing all day long,” he said.

JP Morgan’s European real estate team works out of offices in London, Paris, Frankfurt and Luxembourg and has a headcount of 50.