Jersey, U.K., October 3, 2019 – ActivumSG, which targets real estate investment opportunities across the capital structure in select European markets, has delivered a 210% return to investors in a fund established by the private equity firm six years ago.
Saul Goldstein, ActivumSG’s Founder and Managing Partner, said: “These stellar returns validate our decision to start investing in Spain and to make corporate acquisitions in Germany. We achieved this performance in just six years, which is fast-going for a real estate private equity firm. We aren’t resting on our laurels, however, and are already exploring new approaches and investment themes for our latest fund.′′
Fund III launched in 2013, raised €380 million of equity commitments from investors in less than 9 months. ActivumSG introduced new strategies for the fund in addition to investing in buildings with turnaround opportunities, development sites and loans to third parties for real estate projects. The fund is being wound up in record time after exiting the last assets in its portfolio – a condominium development in Alicante, the Walzmühle shopping center in Ludwigshafen and two loans secured by sites in Berlin and Munich.
The first of these was corporate acquisitions in Germany. ActivumSG assembled Instone Real Estate, the country’s largest residential development company, an investment that generated more than a fourfold return on invested capital following the company’s listing on Frankfurt Stock Exchange last year. The firm also broadened its geographic focus in 2014 to include Spain, where it established a team to source opportunities and manage assets. The fund’s four Spanish investments generated an average gross IRR of 32%. Overall, Fund III generated €415 million in profits for investors and a 34% internal rate of return (IRR).
An example of one of these investments is Manuel de Falla, a mid-sized office redevelopment in Madrid’s central business district. ActivumSG Fund III acquired the asset in early 2014 from a distressed seller and sold it in June 2017 after a full refurbishment. In fact, shortly after acquisition, ASG had arranged a forward sale of the asset.
Since opening an office in Madrid, ActivumSG launched and fully invested a €200 million Spanish real estate fund and has deployed more than €600 million of discretionary equity in residential projects in Spain. In addition to its 12 person- strong investment advisory team, ActivumSG established ASG Homes, an independent, vertically integrated residential development platform with 28 professionals overseeing projects nation-wide.
ActivumSG’s Goldstein concluded: “Our strategies for investment are always evolving, fed by the expertise and local market intelligence of our on-the-ground teams. The overall ActivumSG team has grown to more than 60 people giving us the ability to maximize returns for the portfolio. We are constantly looking to bring in new ideas and talent to create value for our investors.”