Genesta Secures 334 Million Euros in First Closing for Third Value Add Fund
Genesta completes the first closing of its third value add fund in the amount of 334 million euros. The commitments have been secured from eight investors from its predecessor fund. The closing follows the successful completion of the investment period for the predecessor fund GNRE Fund II, which is expected to significantly exceed its return target. To date GNRE II has completed two divestments with an average net IRR in excess of 30%.
The new fund targets a return of 12-14% by investing predominantly in offices in the capital city regions of the Nordics but also logistics and retail in the capital city regions and larger regional cities. Value is added through refurbishment, lease up and repositioning of assets. With leverage, the fund has a target real estate investment volume of ca 900 million euros.
We are very pleased with the strong support from our existing investor base. This is a testament to the success of the predecessor funds and our clients’ strong belief in our strategy- David Neil, CEO and founding partner of Genesta
The fund now seeks additional capital from investors to arrive at its target of 450 million euros.