Azora is launching a new European multi-strategy vehicle with a capital of 270 million euros and an investment capacity of 500 million euros. This fund has an investment horizon of 5 to 10 years and its main goal is to take advantage of the various opportunities that arise in the real estate sector in southern Europe, adapting flexibly to these circumstances.
The fund seeks to invest in both traditional segments, such as land development and office repositioning, and emerging asset classes, including rental residential development, data centers, agriculture, leisure, retail, alternative housing models and student residences.
To carry out this strategy, Azora has a team of eleven professionals who bring extensive experience in identifying opportunities and transforming assets for repositioning. The objective is to adapt these assets to the needs of a dynamic and demanding market, which demands high quality assets managed with the highest standards of professionalism, providing significant added value.
The fund seeks to invest in both traditional segments, such as land development and office repositioning, as well as in emerging asset classes.
This transaction marks the third fund Azora has launched with a flexible multi-sector strategy and European reach. The hispania socimi, launched in 2014 with €1.1 billion in capital, achieved a 19% net IRR return over its 4 years of existence, until its sale to Blackstone in 2018. Subsequently, Azora established Azora Principals, a fund invested 100% with its own and partners' capital, with the objective of doubling the investment in five years. This fund has generated an average return of 23% on its divestments to date.
Cristina García-Peri, managing partner of strategy and corporate development, said: «in the current environment of increased volatility and uncertainty, large institutional investors are betting on expert managers who have in-depth knowledge of the real estate sector and differential access to investment opportunities. The European multi-strategy vehicle we have designed at Azora allows us to identify the best opportunities that arise in different markets and sectors, and to generate a higher return for our investors».
Javier Rodríguez Heredia, co-managing partner of Azora's real estate division, commented: «new trends in the way we live, work and play will require a major transformation in the way assets are used and designed. In the current macro environment of increased volatility and higher interest rates, the performance of real estate assets is going to be achieved through active and professional management. This transformation strategy also meets sustainability criteria and plays a social role, values to which Azora is highly committed».
