The new fund follows BEREP II, which has invested €150 million in six European countries, with France and Germany getting the bulk of the capital. BEREP II and BEREP III now have access to €600 million in capital combined and €2 billion in buying power, management says.
Marc Mogull, managing partner at Benson Elliot, stresses that finding the right deals won't happen over night. "Patience will be a virtue in this downturn, because there will be no shortage of opportunities and recovery won't come quickly," he says in a press release. "Our approach is not vulture investing, it's value investing."
Among Benson Elliot's acquisitions last year was the purchase of €42.5 million of mezzanine debt supported by a hotel portfolio in Germany with GEM Realty Capital, an affiliate of Blackstone Real Estate Partners. About a year ago it took a 60% stake in Karolyi Istvan City Centre, a 1.5-million-square-foot mixed-use project under development that has a projected value of €220 million.
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