ActivumSG raises EUR550m for distressed European real estate strategy
ActivumSG Capital Management, the real estate private equity manager specialised in turnaround and special opportunity investments, has raised a total of EUR550 million from international investors to deploy in European markets that are experiencing growing distress.
ActivumSG Real Estate Fund VI has already committed more than 50 per cent of the total amount of capital raised by its final close. The pan-European fund’s focus is on distressed opportunities or creating value in turnaround situations, mainly in five markets – Germany, the Netherlands, Spain, Portugal and the UK.
Saul Goldstein, CEO and Founder of ActivumSG, says: “We’re bringing much-needed liquidity to distressed situations and sectors. Hospitality was one of the first to fall into distress, which is why it’s a major investment theme for our Fund. Standing assets are starting to offer value now after several years of prohibitive pricing. We’ve been steadily closing transactions for Fund VI and have sourced a strong pipeline of deals thanks to the experienced local investment teams we have on the ground. Having local networks is proving to be even more important now than before, given the travel restrictions in place.”
ActivumSG anticipates that Europe’s most resilient hotel markets will benefit from a recovery in leisure and business travel as the Covid-19 pandemic recedes. Fund VI has implemented that strategy so far through its acquisitions of Dutch-based operator Odyssey Hotel Group and Nobu Hotel Barcelona at the end of 2020. One of the fund’s other large investments is Dutch residential developer VanWonen, which has been trading resiliently to meet its pre-pandemic sales targets. ActivumSG’s funds invest through corporate acquisitions, debt or direct asset purchases to give investors the best risk-adjusted exposure to strong real estate investment themes.
ActivumSG Real Estate Fund VI received commitments from 70 per cent of investors in ActivumSG’s preceding fund and attracted 11 new investors. ActivumSG has invested in its own investor relations capabilities, building up a team in Europe and the US for its outreach program and to foster closer ties with its investor base.
Annemarie Manning, ActivumSG’s Head of Business Development and Investor Relations, says: “ActivumSG’s strong track record and our investment team’s insightful views on prospects for European markets allowed our in-house IR team to bring in high new investor numbers and achieve a great re-up rate from existing investors. Our strong pipeline means investors can expect their capital to be put to work fast. We will also probably need to raise a successor fund in the second half of the year.”