Valad Europe has €1bn of gross capital to invest in European markets including the UK, Germany, Spain and France. Up to €450m could be invested in the UK and Germany for Valad European Diversified Fund, Valad chief investment officer David Kirkby said. The new fund, which began investing late last year, has initial equity of €180m with a second tranche of capital approved by investors “if we find the deals and hit the returns”.
Another €100m is expected to be invested for the Select Industrial Real Estate Fund (SIRE), which began buying UK industrial property last year with seed capital from south African investor Grindrod. Valad is talking to other investors about coming into the fund. Kirkby said Valad is also seeking acquisitions for “one or two separate account clients who would potentially invest several hundred million if we find the right core-plus to value added deals across our European business”.
In Spain, Valad is in “investigative mode” and recently hired Howard Barnes to find potential acquisitions. Karl Delattre left BNP Paribas REIM to diversify Valad’s French assets into retail and offices as well as industrial. Kirkby said VEDF had bought about £50m of UK assets, including The Royals shopping centre in Southend and three small offices, and had two more UK and several retail and industrial German acquisitions in the pipeline, while SIRE has invested a similar amount. But he added: “We have to invest in the right deals and some vendors are asking too much.”