Arcano has launched its third real estate fund, with the aim of raising 200 million euros, which would give it ammunition of around 400 million for buyouts if it adds the usual 50% leverage. This would be its largest vehicle for acquiring real estate.
This third fund is called Arcano Value Added Real Estate III (AVA III) and will be earmarked for purchases in both Spain and Portugal, where the company has not yet invested, according to the company itself.
The new vehicle will invest in residential, hotel, logistics and office real estate assets, as well as in alternative sectors such as residential rental, data centres and healthcare. Clients are expected to be institutional investors (funds and insurers) and private banking. Arcano's partner in charge of real estate is Eduardo Fernández-Cuesta, who points out that the fund will offer clients "unique investment opportunities".
The focus of the fund will be to seek investment opportunities in undervalued and underperforming properties, with the aim of transforming them into core assets that meet the highest sustainability standards. Precisely, AVA III has the peculiarity of having been registered under regulation as an article 8 fund of the EU Taxonomy on Sustainable Activities. Therefore, the methodology it follows in its investments is to reshape and transform assets to meet ESG criteria (which include sustainability aspects).
In the first of its funds, already disinvested, it raised 80 million and obtained a return of 17%. It closed the second vehicle in 2020 with 130 million and a target return of 17% when it completes its divestments. With AVA II, Arcano acquired the former headquarters of Agencia Efe in Madrid, in the Chamberí district of Madrid. The project of 50 luxury homes was commissioned to Estudio Lamela and has already been completed and sold.
In addition to its three traditional funds, Arcano also manages the Fondo Impacto Andalucía, a joint vehicle between the European Investment Bank (EIB) and the Andalusian regional government.
