Global private equity firm The Carlyle Group today announced that it has raised 760 mln. for its second European real estate fund, Carlyle Europe Real Estate Partners II. Globally, Carlyle now has seven real estate funds totalling $4 bln. of committed capital. Last month, Carlyle announced the launch of Carlyle Asia Real Estate Partners at $410 mln., and its US real estate fund, Carlyle Realty Partners IV at $950 mln.
Carlyle Europe Real Estate Partners II is dedicated to investing in off market opportunities primarily in office, logistics, retail properties, but also in the hotel and residential sectors across Europe, including France, Germany, Italy, UK, Spain and the Nordic countries. This is the second fund Carlyle has launched in Europe. The team has already signed five transactions from the fund for more than 400 million, including the acquisition of three residential developments for 400 apartments in Copenhagen from NCC, and the 26-building portfolio in Italy from Beni Stabili for 255 million.
The fund will be managed by a team of 27, including acquisition and asset management professionals, based in France, Germany and Italy. The team has a proactive and highly selective approach to acquisitions and asset management investing in both existing structures and land for development. The fund focuses on a single asset approach in the 20 to 80 mln. asset class, but also invests in portfolios.
Eric Sasson, Managing Director and head of the European real estate team said, "We are delighted to have received such good support from our investors for our second fund, and believe that there is good potential in the real estate market in Europe. There are increasing amounts of corporate sales of properties, vacancy rates are declining and there have been few new developments. Our proactive strategy of refurbishing existing buildings and development of new properties puts us in a strong position to take advantage of the current environment."
In 2004, Carlyle closed its first fund, Carlyle Europe Real Estate Partners I at 430 mln. The team has fully invested the fund in 25 transactions. Recent transactions from the fund include the acquisition of the Poseidon portfolio of 230 properties across Italy from San Paolo IMI for 320 mln., the large Montrouge site from Schlumberger for 175 million in France, a 13,000 m² retail/office building in the CBD of Hamburg from UFA cinema, Loi 15, a 2,000 m² office building located in the CBD of Brussels and Cheapside, a 17,000 m² retail/office redevelopment project in the city of London.
The team has already sold six assets from CEREP I for a total of more then 250 mln. Carlyle has also sold 21 of the 36 properties in the Jupiter portfolio, acquired in March 2003, and 210 properties from the Poseidon Portfolio acquired in November 2004.