BGO, a global real estate investment management advisor and provider of real estate services, announced that it has successfully raised €2 billion for its European investment program through its fourth European Value-Add Strategy. With this announcement, the Value-Add Fund has raised €1.463 billion in commitments and €520 million through co-investment opportunities in high-quality industrial and data center platforms in Europe. This is the fourth fund in BGO’s European Value-Add strategy, which has invested over c. €4 billion since 2014.
This Value-Add Fund will primarily focus on sectors that benefit from structural growth in demand, specifically the living sector, logistics, including cold storage and urban logistics, data centres, and those experiencing cyclical challenges impacting values. The team will seek to apply its local asset management expertise in key European markets to transform under-valued or under-managed assets in well-established locations into high-quality investments with a high stabilized yield on all-in cost.
KEY QUOTES:
“BGO’s European Value Add series has now successfully navigated multiple cycles over more than a decade, with Fund IV being our largest raise yet and well positioned to take advantage of this current cycle. Building vertically integrated capabilities across multiple countries and having the skills to invest in leading operating companies and platforms, like data center company Bulk Infrastructure and developer and contractor Techbau, has given our European strategy a unique edge.”
-John Carrafiell, co-CEO, BGO
“Our European Value Add fund franchise continues to attract strong support from existing and new investors. BGO’s ability to navigate changing market circumstances, manage risks and capture opportunities across the key markets in Europe has contributed to developing strong, long-term relationships with our investors. Our fourth European Value-Add strategy retains significant dry powder to capitalize on the strong opportunity in European real estate as markets enter a period of greater stability and growth prospects. BGO’s differentiated deal-flow, strong history of co-investments in sectors with long term growth prospects, and our strong fiduciary mindset, will continue to enable the successful growth of our European platform.”
-Toby Phelps, Managing Partner, and Head of European Equity at BGO
“We are pleased with the support received for our European Value Add franchise. The strategy’s relative performance and track record in offering attractive co-investment opportunities in best in class and scalable platforms have resulted in more than 80% of the investors in this new fund being comprised of existing investors who continue to partner with us, as well as a number of new strategic relationships.”
-Francesco Ostuni, Managing Partner, and European CIO, BGO
