BGO Raises $2.2 Billion for Fourth European Value-Add Strategy

The Miami-headquartered BGO, a global real estate investment management advisor and provider of real estate services, said that it has raised $2.2 billion for its European investment program through its fourth European Value-Add Strategy.

The Value-Add Fund has secured $1.62 billion in commitments, with an additional $578 million raised through co-investment opportunities in high-quality industrial and data centre platforms across Europe.

John Carrafiell, co-CEO at BGO, said that BGO’s European Value-Add strategy has invested about $4.5 billion since its inception in 2014 and the BGO’s European Value Add series has successfully navigated multiple cycles over more than a decade, with Fund IV being our largest raise yet and well positioned to take advantage of this current cycle.

He highlighted data centre company Bulk Infrastructure and developer and contractor Techbau as examples companies that have benefitted from the investment and vertically integrated capabilities provided by the strategy.

The Value-Add Fund will primarily focus on sectors benefiting from structural growth in demand, including the living sector, logistics, cold storage, urban logistics and data centres. Additionally, the fund will target sectors experiencing cyclical challenges that impact values.

BGO plans to leverage its local asset management expertise in key European markets to transform undervalued or undermanaged assets into high-quality investments with high stabilised yields.

Investors Support

Toby Phelps, Managing Partner, and Head of European Equity at BGO, said that their European Value Add fund franchise continues to attract strong support from existing and new investors. BGO’s ability to navigate changing market circumstances, manage risks and capture opportunities across the key markets in Europe has contributed to developing strong, long-term relationships with the company’s investors, he said.

Phelps added: “Our fourth European Value-Add strategy retains significant dry powder to capitalise on the strong opportunity in European real estate as markets enter a period of greater stability and growth prospects. BGO’s differentiated deal-flow, strong history of co-investments in sectors with long term growth prospects, and our strong fiduciary mindset, will continue to enable the successful growth of our European platform.”

BGO’s managing partner and European Chief Investment Officer Francesco Ostuni said that the strategy’s relative performance and track record in offering attractive co-investment opportunities in best in class and scalable platforms have resulted in more than 80% of the investors in this new fund being comprised of existing investors who continue to partner with us, as well as a number of new strategic relationships.

BGO, formerly known as BentallGreenOak, is part of SLC Management and currently manages approximately $83 billion in assets on behalf of over 750 institutional clients globally.

With offices in 27 cities across 13 countries, the company brings deep local knowledge and extensive networks to its real estate investment and management activities in primary, secondary, and co-investment markets.