Sparinvest closes third FoF at €317m

The Copenhagen-based multi-manager has held a final closing of Sparinvest Property Investors Fund (SPF) III fund and is already two-thirds of the way committed.

Copenhagen-based Sparinvest Property Investors has closed fundraising for its third fund of funds at €317 million of equity commitments, the company announced today.

The total raised for Sparinvest Property Investors Fund (SPF) III falls shy of its previous €400 million target for the fund. But it is almost 60 percent more than it raised for the second fund in the series, for which it collected €200 million in 2011. Investors include pension funds, foundations and family offices, including both existing and investors new to the firm.

While this time around the firm has more capital to deploy, it is expected to adopt a similar investment strategy to that used before. Managing partner Bo Jensen said: “SPF III continues with the successful strategy of the previous fund and invests alongside local operating partners, taking advantage of their network and expertise in asset management and turnarounds,” he said.

“We are focusing on under-managed properties with great potential for growing net operating income through hands-on management techniques, as well as development projects in high-growth markets with an undersupply of up-to-date properties.”

Sparinvest said the fund already was two-thirds committed via eight joint venture partners, investing in 150 properties across markets including the US, the UK, Germany, Japan and China. Sectors to have received investment include multifamily, retail and student housing. Sparinvest also has invested in bridge lending and the firm said it was close also to reaching its emerging markets allocation of a third of capital raised. The firm said it expected SPF III to be fully deployed by the second quarter of 2015.

Among its investments is a commitment to the second China opportunity fund of InfraRed Capital Partners and Chinese textiles giant Nan Fung.

The fundraise brings the total amount of equity raised by the firm since its founding in 2005 to approximately €1 billion.