Value-Add

The Madrid-based manager pulled in €1.6bn for the value-add fund and €450m for related co-investments, a record haul for the subregion.

Developer Panattoni’s in-house investment platform is preparing a first exit for the fund, with two new vehicles also slated for 2027.

With commitments from NPS and its own life insurance business, the $700m fund is the UK asset manager’s first value-add commingled offering in the region.

The Los Angeles-based manager scored a $100m commitment to the value-add vehicle as part of a broader strategic partnership with GCM Grosvenor.

Amid a slow fundraising environment for the Boston-based manager’s debut private real estate vehicle, its CEO says it is patiently building its track record via new JV relationships.

The value-add/opportunistic vehicle is the first in a pan-regional fund series from the manager founded by former Harrison Street exec Daniel Gorzawski.

The pension fund sees less correlation to geopolitical shocks, lower borrowing costs and broader sector choice compared with the US and Europe.

Vehicles targeting the strategy needed less than half the time in market of their equity counterparts that closed in the first half-year.

The vehicle, which includes a Japan-only sleeve aimed at domestic investors, is targeting returns of 10-12%.

The $218m vehicle beat its target size and attracted significantly more capital than its predecessor.