Carlyle’s Third European Fund Closes with $13.9B in Buying Power

The Carlyle Group has just wrapped up its third European real estate fund, Carlyle Europe Real Estate Partners III, with approximately $3.4 billion in commitments, surpassing Carlyle’s $2.3 billion target. In terms of leverage, the fund will have a total of as much as $13.9 billion to invest in properties in Western and Central Europe. The new European fund is by far the largest of the three, with the first having raised $659 million and the second having closed with $1.2 billion. The list of contributors to CEREP III was diverse, and American entities were among those who threw in capital for the endeavor. “There was a significant number of U.S. investors in the fund; their interest in European properties remains strong,” a Carlyle spokesperson told CPN today. As was the case with CEREP I and II, CEREP III will single out assets spanning a variety of property types including office, retail, residential, hotel, as well as logistic and industrial. “In previous funds, we have focuses on office properties, although most recently, we have been focusing on retail,” the spokesperson said. “And we will target other property types on an opportunistic basis.” One of the main criteria for the assets is that they feature value-add potential through repositioning or redevelopment. Carlyle will also invest in ground-up development projects. Already, $1.1 billion has been shelled out through CEREP III for 10 assets.