Alternative investment manager Harbert Management Corp. announced that it has raised $325 million in equity commitments for Harbert European Real Estate Fund III, its third pan-European real estate opportunity fund, including $197 million in co-investment equity. The fund said it will focus on deals involving over-leveraged borrowers, upcoming debt maturities and institutional owners refocusing on core competencies or markets.
Harbert Management Corporation (“HMC”), an alternative investment manager, today announced it has raised over $325 (€254) million of equity commitments for Harbert European Real Estate Fund III (“the Fund”), its third pan-European real estate opportunity fund, including $197 (€151) million in co-investment equity. The Fund will primarily target institutional-quality European real estate investments at opportunistic pricing with a focus on over-leveraged borrowers, upcoming debt maturities and institutional owners refocusing on core competencies or markets.
To date, the Fund has made four acquisitions, most recently acquiring approximately four million square feet of UK industrial assets. All current investments are performing at or above underwriting targets.
“With highly leveraged buyers forced out of the market and many investors still on the sidelines working through legacy portfolio issues, we see opportunities in the European real estate market that we are well-positioned to take advantage of,” said Raymond Harbert, CEO and Founder of HMC. “While we are seeing the European investment market taking more time to recover than in the US, high-grade distribution assets in the UK and prime office space in Paris, for example, provide attractive long-term investment opportunities.”
Senior Managing Director Scott O’Donnell added, “Cash is still king, and the competitive landscape and risk-adjusted return profiles are at their most attractive levels in recent years.”
HMC’s own commitment to Fund III is €20 million, which was made on the same terms and conditions as all other limited partners.
HMC, an alternative asset management firm with approximately $3 billion in assets under management as of January 1, 2013 is a privately-owned firm formed in 1993 to sponsor alternative asset investment funds. HMC serves foundations and endowments, funds of funds, pension funds, financial institutions, insurance companies, family offices and high net worth individuals across multiple asset classes. Investment strategies include European and US real estate, venture capital, mezzanine debt, independent power, US and Australian private equity, and public securities. Beginning in 1985, HMC and its predecessor organization Harbert Corp., together with its sponsored funds, have owned, developed and managed commercial properties throughout Europe and the US. HMC employs a hands-on approach focused on value creation through operational management and targets institutional quality properties, typically with in-place cash flows.