The fundraise was over-subscribed, exceeding an initial target for the Fund of €600 million. Including over €75 million of co-investment earmarked for BEREP IV (of which c. €50 million has already been deployed), the total available equity for the Fund will be above €700 million.
BEREP IV’s investment programme is well-advanced, with nine transactions in six countries already completed at final close. Investors in the Fund have also benefitted from two realisations: the sale of Kurfürstenstraße 87 in Berlin to a fund backed by a German professional pension scheme, and the sale of the Renaissance Hotel and Marriot Executive Apartments in Brussels to a European institutional hotel fund. These two early disposals delivered an equity multiple above 2.5x.
Marc Mogull, Benson Elliot Managing Partner, said: “Benson Elliot continues to find value and deliver performance for a broad range of investors in European real estate. We’ve worked hard to build a dynamic, high-performing operation where our interests and those of our investors are closely aligned. The market’s response to this latest fundraise validates our differentiated model, best in class talent and focused investment approach.
“As the events of the last week highlight, market uncertainty and change are constants in our world. Our investors expect us to exploit the opportunities volatile markets present, whilst keeping a careful eye on risk exposure. I’m confident that, as long as we keep the right team on the pitch, maintain our investment discipline and stay true to the mission we’ve been tasked with, we’ll continue to thrive.”
The capital for BEREP IV has been raised from a global group of c. 30 primarily institutional investors, including public and private pension funds, university endowments, sovereign wealth funds, insurance companies and family offices. Approximately 50% of the capital raised came from US investors, with 40% from European investors and the balance from the Middle East and Asia. Over 60% of the capital was from investors who had invested in a prior fund.
In the UK, BEREP IV has acquired Vicarage Field Shopping Centre in Barking, the Meadows Shopping Centre in Chelmsford and Guildford Business Park. On the Continent, the Fund has acquired prime hotels in Paris, Milan and other gateway cities, as well as several office and residential assets in Berlin and a shopping centre in Bologna.
ENDS