Invesco launches €500m living fund
Invesco Real Estate has launched a fund to invest in European residential assets with a gross asset value target of €500m (£447m) over the next two to three years.
The European Living fund will invest in build-to-rent, micro-flats, student housing and single family housing. It will target schemes in Germany, the Netherlands, Denmark, Austria, France, Spain, Italy, the Czech Republic and Poland.
It has an initial equity commitment of €140m from three German institutional investors, with debt bringing its current investment capacity to €190m. Further commitments of €80m are in due diligence.
Invesco Real Estate has launched a fund to invest in European residential assets with a gross asset value target of €500m (£447m) over the next two to three years.
The European Living fund will invest in build-to-rent, micro-flats, student housing and single family housing. It will target schemes in Germany, the Netherlands, Denmark, Austria, France, Spain, Italy, the Czech Republic and Poland.
It has an initial equity commitment of €140m from three German institutional investors, with debt bringing its current investment capacity to €190m. Further commitments of €80m are in due diligence.
The fund will target a 4% per annum gross income return and gross total returns of 5.5-7.5%. Invesco has further closes planned over the next six months.
Invesco will target existing and newly developed buildings and its first acquisitions will be two assets in France and Italy for a combined €100m.
William Ertz, senior director of fund management at Invesco, said: “European residential investments have shown outperformance compared with other asset classes in the long-run while showing less volatility, and they have also proven to be especially crisis-resistant with a high degree of income stability.
“In our view the outlook is positive as the fundamentals are still good in metropolitan areas: an undersupply in main cities, long-term housing supply/demand imbalances, and an historical high gap to government bond yields.”
Over the past five years, Invesco has expanded its BTR portfolio across multiple mandates, with €2.3bn deployed through a combined portfolio of 38 investments with 7,790 individual units across seven countries.
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