TPG Angelo Gordon has closed on $2.27 billion of capital commitments for its European real estate strategy.
TPG AG Europe Realty Fund IV has raised an additional $214 million in co-investment capital for the fund, which is TPG Angelo Gordon Europe Real Estate’s largest to date, 50% ahead of its predecessor vehicle, not including the co-investments.
It says the fund will target all property types in the UK and major markets in Western Europe and the Nordics and seek to identify off-market investment opportunities with a focus on "sub-performing assets along the entire value-add spectrum".
Launched in 2009, TPG AG Europe Real Estate has bought more than 258 properties for a gross purchase price of $7.2 billion. Including asset-level capital expenditures and investments, the business has invested more than $10 billion.
TPG Angelo Gordon said Fund IV’s limited partner base comprises public and corporate pensions, sovereign wealth funds and endowments. Nearly 60% of Fund III investors committed capital to Fund IV, while 53% of committed capital was from Middle East and Asia-Pacific investors, 39% from North America and 8% from Europe.
The fund is approximately 20% committed, with a "robust pipeline of opportunities", the group says.
TPG Angelo Gordon said it believes the fund’s target markets will provide attractive opportunities, given the "meaningful interest rate increase in Europe has led to a significant erosion in real estate valuations".
Recent transactions include the acquisition of a large portfolio of single family and multifamily residential properties in the Netherlands, a 72,000-square-metre light industrial redevelopment site in Paris and the continued aggregation of a UK industrial outdoor storage portfolio.
TPG AG has a network of approximately 50 local operating partners across Europe identifying assets and sourcing off-market opportunities.
The TPG AG Real Estate Europe team comprises 30 professionals with offices in London, Amsterdam, Milan and Frankfurt.
TPG Angelo Gordon has been investing in commercial real estate since 1993 and has acquired over $45 billion of properties globally.
Anuj Mittal, head of TPG Angelo Gordon's Europe Real Estate, said in a statement: “We began investing in Europe after the GFC, and this fundraise reflects strong investor confidence in our strategy, track record, team, and the compelling investment opportunities we are sourcing through our proprietary networks. We believe this market environment is exactly where we thrive – valuation stress and distress along with structural shifts in supply and demand across asset classes is already generating a very compelling set of opportunities for investors with capital and experience.”
Tom Rowley, co-portfolio manager, TPG Angelo Gordon's Europe Real Estate, added: “Our long-term and mutually beneficial relationships with nearly 50 local operating partners provide us a distinct sourcing advantage in a fragmented European market. Our established network enables us to generate attractive off-market and proprietary opportunities, which are only multiplying under the dual pressures of normalising rates and broader economic uncertainty.”
Angelo Gordon was bought by TPG in 2023, becoming a new diversified credit and real estate investing platform within the firm.