Round Hill Capital, a leading global specialist real estate investor, developer and manager has closed its European Residential Income Fund II (ERIF II) with c. €440 million of equity commitments with significant capital left to deploy in selected markets.
The closing follows a final tranche of €90 million raised from a French listed fund and an Asian public pension fund. They join nine existing institutional investors in the Fund comprising a range of state pension funds, insurance companies, financial institutions and family offices.
The Fund targets Core/Core Plus returns by investing in multifamily opportunities in strong locations that exhibit positive demographic trends, persisting supply/demand imbalances and strong transport links.
Through its European network of offices, Round Hill Capital has already built a high-quality portfolio for ERIF II with 2,050 units under management and the Fund has significant dry powder available to invest to take advantage of the current market conditions. The closing follows the recent acquisition of a 324-unit BTR development in Aarhus, Denmark in February 2023, and in total the Fund assets currently span five countries: Germany, Ireland, the Netherlands, Denmark and Finland.
Purpose built rental housing has proven to be resilient throughout market cycles, demonstrating its defensive qualities during the current uncertain and inflationary environment and against a backdrop of rising interest rates.
To date Round Hill Capital has successfully raised over $7 billion of equity from over 40 global institutional investors in its multiple strategies, with over 140,000 residential units owned or managed across Europe.
Michael Bickford, CEO at Round Hill Capital, said: “To have raised close to €440 million for ERIF II is a significant endorsement of both Round Hill Capital’s continued track record of driving client returns through the cycle, as well as the continued appeal of residential asset classes. We established ERIF II to invest for the long term and to date we have established a high-quality portfolio of multifamily assets across Europe, which are performing ahead of benchmark despite the challenging and volatile market conditions. With more than half of the Fund’s capital available to invest we are well placed in the current environment, which is creating some very interesting opportunities."