London-based Delancey has raised €1.5 billion ($2 billion) for a UK- and Europe-focused fund targeting direct investments, developments, public-to-private transactions and equities.
Unlike previous vehicles, the firm’s latest fund will target mainland Europe, as well as the UK. It is also structured unusually in that it is an evergreen investment vehicle, meaning that investors provide long-term, unrestricted capital.
In a statement, the firm said the structure would “allow Delancey to make longer–term commitments, without restrictions that a limited life fund imposes, and therefore consider larger more complex opportunities.”
The fund is also likely to co-invest alongside investors.
Jamie Ritblat, chairman and chief executive, called it an “interesting time” for real estate. “Many markets have experienced exceptional growth over the last few years, but we are now seeing more uncertain conditions which could give rise to some interesting opportunities,” he said. “Certainly it is a phase of the cycle where a more entrepreneurial approach will be needed to drive returns.”
Previous examples of investments made by the firm include the creation of luxury hotel and resorts owners Hilwood Resorts & Hotels, the acquisition of UK developer Allied London and the establishment of property outsourcing company Mapeley.