Europa Capital is an established pan-European real estate equity and debt fund manager that has focused solely on investment across European real estate markets. As a result, we offer a deep understanding of real estate fundamentals and market cycles, and are truly pan-European in approach, capabilities and experience.
The Europa Capital team benefits from a 25-year track record of investing in European real estate on behalf of institutional investors from around the world. We have successfully sponsored and managed 12 commingled real estate funds since 1995. We have acquired more than €11.7bn of real estate in more than 135 investments across 21 countries.
As a member of a leading real estate investment and management group, headed by Mitsubishi Estate Co., Ltd, with group AUM of over $108bn (including balance sheet capital), we benefit from a strong balance sheet and a global approach to institutional real estate fund management.
Investment principles & strategy
VALUE ADD FUNDS
Europa Fund VI (2019, €590m committed to date)
Europa Fund V (2016, €716m incl. co-investment commitments)
Europa Fund IV (2012, €604m)
Europa Fund III (2007, €730m)
Europa Fund II (2004, €450m)
Europa Fund I (1999, €225m)
As a specialist value-add manager, Europa Capital employs dedicated real estate professionals, with expertise in active asset management, refurbishment and change of use, to deliver investment performance through astute acquisition and asset management strategies.
We identify asset-specific investment opportunities which have the potential for us to undertake asset improvement initiatives and to maximise rental growth opportunities. A summary of the value-add investment strategies is noted below:
- Provide a balanced portfolio of investments, diversifying risk by sector and geography.
- Focus on traditional sectors in key markets of France, Germany and the UK.
- Target and reposition capital-starved and under-managed properties such as maturing equity funds and disposals from debt and equity fund portfolios.
- Target rental growth potential in ‘winning ’ cities across the region.
- Employ moderate leverage to enhance equity returns, favouring assets with a strong income profile.
- Target individual investments below the size sought by global funds, but above the reach of local capital sources.
- Seek opportunities for environmental and sustainable investing and improvement.
Europa Diversified Income Fund (raising)
EDIF, is focused on creating stable and diversified income through investing in logistics, residential and offices. The Fund will capitalise on the structural changes of innovation and urbanisation, targeting strong economies in Western Europe, with a focus on France, Germany, the Netherlands and Denmark.
Through favourable sector weightings and leveraging Europa Capital’s value-add asset management skills, the Fund will aim to provide long-term outperformance of market benchmarks, for which ESG considerations are a key performance metric.
The initial seed portfolio, totalling c. €350 million of NAV, comprises a mix of logistics, residential and office investments. The portfolio, which has outperformed its market indices to date, is 99% occupied and has recorded 99% rent collection in both Q2 and Q3 2020, demonstrating its resilience during the COVID-19 pandemic. With accretive leverage, the Fund has capital remaining to deploy into further acquisitions to diversify the portfolio. Importantly, some two thirds of EDIF’s annual income is in logistics and residential.
The Fund has also recently completed the acquisition of the first of three residential buildings in the Øresund region of Copenhagen.
Europa Generation Student Fund (2018)
Europa Capital and Generation Estates have formed a joint venture, Europa Generation, which has established the Europa Generation Student Fund to capitalise on continued undersupply of student accommodation in the UK market.
The fund has acquired a portfolio of PBSA in UK regional cities that meet specific criteria regarding the local area (stability of university demand, local student demographics, supply-demand balance, development pipeline and relative rents); academic criteria (relative academic strength, growth of student population, university estate plans and financial stability); and accommodation specific criteria (location, transport links, specifications, price point). The fund will seek to create a portfolio of assets which meets the needs of students, built to a high and consistent standard, with the aim of delivering a sustainable and growing income return to investors.
Other Specialist Funds
Europa Emerging Europe Fund (2007, €164m)
French Real Estate Opportunity Fund (1997, $200m)
Europa Capital has an increasing specialism in senior and mezzanine debt origination in the UK through differentiated products.
Europa UK Debt III (raising)
Europa UK Debt II (2019)
Europa UK Debt (2017)
Europa Mezzanine LP (2013)
Junior Debt Mandate (2013)
UK Mezzanine Fund (1995)
In the UK over the past seven years, the team has developed a strong network of contacts across regional markets. Europa Capital has advanced loans against property valued at over £1bn of which under 14% has been in London, illustrating Europa Capital’s strategic regional focus.
Strategic corporate development
Europa Capital seeks to be a best-in-class real estate fund manager and will continue to focus on realising superior risk-adjusted returns through investment in European property markets, adding value to real estate through active asset management, strategic change of use or development in property assets across Europe. Europa Capital will continue to co-invest alongside investors in future funds and products, and to look for ways to deliver innovative investment solutions to help our clients meet their investment objectives.