RE Capital Property Fund I targets investment volume of €100 million
RE Capital, the pan-European investment, development and asset management company, and Skybound Capital, a global wealth management business, have been appointed to the board of Insula Capital’s new €100 million venture capital fund, the RE Capital Property Fund I (“The Fund”) – to leverage Portuguese real estate opportunities.
RE Capital will also act as the Fund’s development partner, leveraging its experience in the Portuguese market, which includes investing in a number of projects with a total GDV of circa €400 million. Outside of Portugal, RE Capital and its partners have successfully transacted on 30 assets, representing a market value of approximately €1 billion.
The Fund will acquire income producing assets in highly sought-after locations in Portugal, as well as other leading European capital cities, where the Fund’s board can offer a competitive advantage, including Switzerland and the United Kingdom.
The Fund has been launched to take advantage of immediate opportunities across the residential, office, retail, and hospitality sectors within its circa €350 million investment pipeline. Investments will be in line with RE Capital’s ESG policy, an ISO 14001 certified Environmental Management System that provides a framework for the management of the environmental impact of its developments. It will provide investors with access to development projects and real estate-backed preferred fixed-return bond instruments.
RE Capital Property Fund I is a closed-end fund with a subscription term of 24 months and an overall fund term of eight years. It is targeting a circa 6% internal rate of return and 50% net return on investment. The Fund is expected to attract equity investors looking for golden visa status and access to experienced managers and developers with a proven track record in Portugal, like RE Capital.
“This is an exciting milestone for RE Capital in Portugal,” says Newman Leech, co-Founder and CEO of RE Capital. “Our wealth of experience and depth of knowledge in the Portuguese market, combined with the current opportunity offered by Portugal’s golden visa programme, make this a compelling prospect for a range of investors, including HNWIs and international investors wanting exposure to a diversified real estate portfolio. We very much look forward to working with Insula Capital, Skybound Capital and the rest of the Fund’s board to build on our success in this market and deliver powerful returns for investors.