The Copenhagen-based real estate firm raises almost 60% more capital with this fund launch than with its predecessor. Fund III is already two thirds committed.
Sparinvest Property Investors (SPI) has attracted approximately €317 million to its third global real estate fund, Sparinvest Property Fund III (SPF III). Leading pension funds, foundations and family offices, including both existing and new investors, contributed to the successful fundraising.
SPF III’s objective is to deliver a net IRR of 12% to investors by focusing on the small and mid-cap real estate segment in the Americas, Europe and Asia.
"SPF III continues with the successful strategy of the previous fund and invests alongside local operating partners, taking advantage of their network and expertise in asset management and turnarounds", says Bo W. Jensen, Managing Partner at SPI and continues: "We are focusing on under-managed properties with great potential for growing net operating income through hands-on management techniques, as well as development projects in high-growth markets with an undersupply of up-to-date properties."
SPF III is already two thirds committed through eight partners and has invested in 150 properties located in the United States, England, Germany, Japan and China. Investment strategies include seeking heavy value added in multifamily and retail properties, bridge lending on transitional assets as well as student housing developments. In the coming months, SPI will seek to increase SPF III’s exposure to emerging markets in order to reach the target allocation to EMs of approximately one third. SPF III is expected to be fully committed by the second quarter of 2015.
Source: Sparinvest Property Investors