PERE: BGO completes largest European real estate fundraise to date

BGO has successfully completed its largest European real estate fundraising to date, raising nearly €2 billion for BentallGreenOak Europe Fund IV. This includes €1.46 billion for the fund itself and an additional €520 million in co-investment capital. The co-investment portion of the fundraising process stretched over the year following the fund’s close in May 2023. This fourth fund exceeded its €2 billion target, making it BGO's largest European capital raise, surpassing the previous fund, which had raised €1.92 billion. A significant proportion of investors in the fund are existing clients, with over 70% located outside the U.S., including Europe, the Middle East, Asia, and Canada. BGO has also made strategic investments, such as a €350 million commitment to Bulk Infrastructure, a Nordic data center operator, and a stake in the Italian logistics company, Techbau.

BGO's European value-add strategy focuses on sectors benefiting from structural growth in demand, such as residential, logistics, and data centers. Fund IV will also target under-managed assets that can be transformed into high-quality investments. The fund has already allocated 60% of its capital, with a strong focus on logistics and data centers, while also exploring opportunities in the living sector and student accommodation in markets like Italy and Spain. The firm expects data centers to play a larger role in this fund compared to previous ones, with more than 10% of the capital likely to be invested in the sector.

Read full article here.