Ninety per cent of investors return for Invesco Real Estate's Second Pan-European value-add fund
Global real estate investment manager Invesco Real Estate (Invesco) has held the third close of its European Value-Add Fund II (EVAF II), having raised EUR550 million of its EUR750 million target from 18 European, UK and US investors.
Ninety per cent of the investors in Invesco's first value-add fund have committed to EVAF II.
With leverage, Invesco expects to have up to EUR1.9 billion to invest into its pan-European value-add programme.
EVAF II’s strategy is largely a continuation of that implemented in the first fund in the series, focusing on Europe’s most liquid markets where Invesco’s value-add team employs active asset management across sectors to deliver properties for exit into the core market. This strategy has resulted in EVAF I generating gross returns since inception of 22 per cent.
With a portfolio to date of four investments in the logistics and residential sectors in Central Europe, Italy and Spain, the Fund intends to invest its remaining 82 per cent of dry powder over the next three years into opportunities created by changing market conditions, including the impact of Covid-19.
Andrew Hills, Managing Director – Global Client Portfolio Management at Invesco commented: “To have 90 per cent of our existing clients invest in the second fund is testament to their confidence in our value-add team to deliver on what has been a successful programme to date. We’re excited to continue to build up our track record in this growing area.”
Kevin Grundy, Managing Director – Fund Management at Invesco, commented: “We’re using the breadth of the Invesco platform across Europe to identify opportunities where we believe intensive asset management has the potential to create superior returns. Covid-19 is redefining, for instance, what investors and tenants wish to acquire and occupy, and the fund intends to position itself as one of the first to respond to those changes.”
The final close of EVAF II will be held in the summer.