Spanish real estate investment trust Azora has closed its Southern Europe Opportunities III fund, which it claims is its largest so far.
The fund closed on Oct. 5 with a committed capital total of €1.6 billion ($1.8 billion).
Additional €450 million of co-investment capital will bring that number up to €2.05 billion, and Azora predicts the fund’s total investment capacity will be approximately €4.5 billion.
As of its close, the Madrid-based REIT said €900 million, or 55%, of the fund and €350 million of co-invested capital had been placed.
The co-invested capital will target larger transactions, according to an Azora news release.
As the fund’s name suggests, the capital will fund opportunities in southern Europe, notably in Greece, Italy, Portugal and Spain. While hospitality is a major real estate target of the fund, it will also focus on other real estate asset classes, including data centers.
Azora Managing Partner Javier Rodríguez-Heredia said the fund was raised despite a challenging capital landscape.
“This closing is the result of many years of disciplined investing and of building a strong track record. Leading international investors have recognized both track record and our model, which combines specialist teams, in-house development capabilities and the integrated management of operating businesses,” he said.
Cristina García-Peri, Azora’s senior partner of corporate development and strategy, said the completion of the fund underlines the firm’s ability to “execute from the outset. With close to €1 billion of capital invested before year-end and a significant amount of capital still available to deploy, we are well-positioned to continue capitalizing on the opportunities the market presents over the coming years.”
Azora currently manages €16.9 billion of assets. The company added it has “achieved a combined net internal rate of return of 19% across its investments.”
Source: www.costar.com
