Valad doubles fund by €190m after deal glut

The London-based company has returned to investors for further commitments to the Valad European Diversified Fund (VEDF) after investing more than €450 million in eight months and expanding its remit to France

Valad Europe has topped up its Valad European Diversified Fund (VEDF) with another €190 million of capital commitments amid strong investment activity and the expansion of its strategy to France.

The London-based company went back to investors with plans for the existing LPs to increase the size of the fund having previously invested €234 million of capital in 14 assets with a further €229 million in its deal pipeline, it said.

David Kirkby, chief investment officer of Valad Europe, explained: “We had a first close of VEDF last December, having secured €180 million of equity commitments in response to strong demand from select international investors looking for attractive opportunities in European real estate. Having acquired or contracted in excess of €450 million over the past eight months, securing these additional equity commitments from the fund’s investors will enable VEDF to continue pursuing its investment strategy and further expand it geographically into France.”

The total equity size of the vehicle means Valad’s fund ‘doubles’ its firepower to €1 billion when one takes into account the use of loans alongside equity. The Valad European Diversified Fund uses leverage at between 50 percent and 65 percent loan to value and targets individual lot sizes between €5 million and €50 million across the office, retail and industrial distribution warehouse/smaller logistics sectors, targeting strong credit tenants and good quality buildings. The firm said it was prepared to take leasing and repositioning risk.

The core-plus to value-added strategy has taken in the UK and Germany so far, but Valad has now allocated up to €250 million of capital to France where Valad already has a well-established platform.

“We believe France will provide additional attractive opportunities to enhance the fund and we have a strong team on the ground seeking good quality investments, with an offer already accepted on our first acquisition,” revealed Kirby. “At the same time, the UK and Germany continue to provide attractive investment opportunities.”

Overall, Valad Europe manages €4.5 billion of investment and development assets across its funds and mandates.