Long Harbour launches EUR400m European Ground Lease Fund

Long Harbour, a real estate and asset-backed investment manager, has launched its European Ground Lease Fund, a new vehicle that will invest in ground leases on residential and commercial real estate assets across Europe.

The Long Harbour Euro Secured Income 1 Fund (LHESIF 1) will be managed by Richard Silva.

Long Harbour has an initial EUR30 million to deploy through the new fund, and a further EUR370 million committed from investors, bringing the total available to EUR400 million. The vehicle will target ground leases in strong European markets, including Germany and Ireland, and across all asset classes.

Long Harbour’s European Ground Lease Fund will offer a unique financing structure to landlords looking to unlock value from real estate assets. By separating the ownership of land from the property that sits on it, landowners and asset managers will be able to finance their commercial buildings while investors will be able to access a reliable long-term investment in a low risk asset class.

Richard Silva, Executive Director at Long Harbour, says: “Our first dedicated European Ground Lease Fund will target commercial real estate assets in high-performing European markets. We will provide residential landowners with a new source of finance by investing in their ground leases, unlocking the value of their land. This approach will allow landlords to concentrate on their buildings and occupiers.
“We know that the ground lease model works well in the UK and US, and we believe there is significant demand emerging within Europe.”