Jersey-based fund manager ActivumSG Capital Management has just started capital raising for a 鈧�650 mln value-add real estate fund, according to those who track the market.
The fund, which will be Activum鈥檚 fifth and largest to date, will invest in markets such as Germany and Spain. It is expected to invest in a wide-range of asset classes, including value-add offices and retail. Activum declined to comment due to SEC non-solicitation rules.
However, given that Activum invests in niche value-add and opportunistic assets in European real estate, the new fund is likely to have a similar investment remit. The fund manager has raised four funds focusing on Germany and Spain since its inception in 2007: last year, it closed its first Spain-focused fund, Iberia Fund I, at 鈧�200 mln. The fund invests in under-performing assets. Activum's previous funds, Fund I (2009) and Fund II (2011) raised 鈧�56.3 mln and 鈧�248.5 mln, respectively, and are fully invested.
Fund III closed in March 2014 at 鈧�380 mln, and is close to fully committed. Assets in the funds include value-add offices, residential redevelopment, mezzanine loans and special corporate situations.
Activum's funds have a broad strategy, which ranges from direct investment in real estate to real estate lending as well as acquiring real estate companies, such as German homebuilder formart. Activum acquired formart from German developer Hochtief for an undisclosed sum in 2014. The fund manager typically targets deals of between 鈧�15 mln and 鈧�200 mln. It has not publically disclosed its target IRR.
European real estate funds have supersized in recent years as more players 鈥� and funds 鈥� flood the market. According to INREV, there are currently more than 300 non-listed funds in Europe. So far this year, 15 Europe-focused private capital funds - including a private equity component 鈥� have had their final closing, attracting 鈧�46.3 bn in aggregate capital, according to UK-based Preqin, which provides data and intelligence for the alternative assets industry These include opportunistic funds Lone Star Real Estate Fund V, which stands at $5.9 bn, and Hines鈥� BVK Value Added Separate Account, at 鈧�1.3 bn, according to Preqin.
Activum had around 鈧�1 bn of AUM as of end-March 2016.
