Alternative investment manager Harbert Management Corporation (HMC) has raised over USD325m (EUR254m) of equity commitments for Harbert European Real Estate Fund III, its third pan-European real estate opportunity fund, including USD197m (EUR151m) in co-investment equity.
The fund will primarily target institutional-quality European real estate investments at opportunistic pricing with a focus on over-leveraged borrowers, upcoming debt maturities and institutional owners refocusing on core competencies or markets.
To date, the fund has made four acquisitions, most recently acquiring approximately four million square feet of UK industrial assets. All current investments are performing at or above underwriting targets.
"With highly leveraged buyers forced out of the market and many investors still on the sidelines working through legacy portfolio issues, we see opportunities in the European real estate market that we are well-positioned to take advantage of," says Raymond Harbert (pictured), chief executive and founder of HMC. "While we are seeing the European investment market taking more time to recover than in the US, high-grade distribution assets in the UK and prime office space in Paris, for example, provide attractive long-term investment opportunities."
HMC's own commitment to Fund III is EUR20m, which was made on the same terms and conditions as all other limited partners.