Harrison Street held the final close of its third European alternative real estate fund, raising over €800 million ($918 million) in equity making it the firm’s largest European fund yet.
The European real estate strategy dates back to 2015 with a unique focus on student housing, build-to-rent residential and life sciences.
The Harrison Street European Property Partners III, SLP RAIF, has already committed 75% of capital to projects. This includes a life sciences portfolio of over 2 million square feet, which makes the firm one of the largest private real estate owners of life sciences assets in the U.K. Fund III is also investing in build-to-rent and student accommodation in the U.K., Ireland and Spain.
Harrison Street’s London team is growing and now includes over 40 dedicated professionals, comprising 14 nationalities speaking 17 languages. So far the group has acquired or developed 70 assets, including 18,000 student accommodation beds and 2,600 residential units, in partnership with 14 operation partners across the U.K., Ireland, France, Germany and Spain.
Additional investments in the pipeline are expected to expand Harrison Street’s footprint to the Netherlands, Denmark, Italy and Portugal.
“Our first alternative European fund, a 2015 vintage, is under contract to sell its remaining seven assets in the coming weeks, which will result in that fund being fully realized ahead of schedule and with projected returns well ahead of target,” said Paul Bashir, CEO of Harrison Street Europe. We believe this further demonstrates the attractive opportunity within our sectors of focus throughout Europe and the differentiated investment opportunities we offer our investors.”
The $44 billion Harrison Street had one of its most active investment years on record last year and has continued to expand its platform with over 45 new hires and a new office in San Francisco. Headquartered in Chicago, the firm also has offices in Toronto and overall boasts more than 200 employees.