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 24-year track record of investing in European real estate on behalf of institutional investors from around the world. We have successfully sponsored and managed 11 commingled real estate funds since 1995. We have acquired more than €11bn of real estate in more than 130 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 $70bn (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, €483m first close)
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, we maintain strong proprietary deal flow through our regionally focused real estate investment teams and employ dedicated real estate professionals, with expertise in active asset management, refurbishment, change of use and development, to deliver investment performance through astute risk-based acquisition and active 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 and a summary of the value-add investment strategy is noted below:
- A focus on traditional sectors in key markets of France, Germany and the UK, delivering income driven returns.
- Urbanisation: Europa has identified target cities where population growth exceeds the European average. The focus will be on strong occupier demand for real estate driven by job creation and household formation.
- Europa is prepared for cyclical opportunity – the result of uncertain and complex economic and political environments.
- Europa will target and reposition capital-starved and under-managed assets to improve occupancy and increase rental income.
- Europa will target individual investments and portfolios below the size sought by global funds, but above the reach of local capital sources.
- Europa will moderate leverage to enhance equity returns, favouring assets with a strong income profile.
Europa Capital has an increasing specialism in whole loan debt origination through differentiated products in the UK.
Europa UK Debt Fund III (raising)
Europa UK Debt II (2019)
Europa UK Debt (2017)
Europa UK Mezzanine LP (2013)
Junior Debt Mandate (2013)
UK Mezzanine Fund (1995)
In the UK over the past five years, the team has developed a strong network of contacts across regional markets. Europa Capital has advanced loans against property valued at c. £700m of which under 15% has been in London, illustrating Europa Capital’s strategic regional focus.
Europa Diversified Income Club (raising)
The fund will invest in Continental Europe’s strongest business economies and add value by active asset management and appropriate stock selection.
Over 60% (GAV) of the fund’s portfolio will be invested in France, Germany, and the Netherlands, with the remaining allocation to Spain, Sweden, Denmark and Poland. Only core sectors (offices, residential, and industrial/logistics) will be considered for the fund.
Key Fund Themes
Diversification: by geography, sector and tenant type, with the intention of smoothing volatility in distributed returns.
Income: target multi-let properties with staggered lease profiles, allowing active asset management to capture the current upswing in the rental cycle.
Liquidity: Fund underpinned by rigorous stock selection restricted to core sectors in core countries, and will only target sectors with consistently high volumes of institutional investment activity.
Europa Generation Student Fund (2018, €94m first close)
Europa Emerging Europe Fund (2007, €164m)
French Real Estate Opportunity Fund (1997, $200m)
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.
This information is provided for use by qualified institutional investors and their advisers only. Further information is available upon request. Europa Capital LLP is authorised and regulated by the Financial Conduct Authority.