Sparinvest Property Fund IV (SPF IV) is a global value add fund, which had its final close in mid-2016 with EUR 505 million in total commitments.
SPF IV is a continuation of SPF II and SPF III’s strategy. It targets a net IRR of 11%+ to investors by investing in the small- and mid-cap segment alongside local operating partners. SPF IV is expected to maintain a prudent leverage of approximately 50% loan-to-value.
SPF IV will mainly invest in existing properties with significant potential for NOI growth through hands-on repositioning techniques. SPF IV will also do developments in markets with significant growth and undersupply of up-to-date buildings. Approximately two thirds of the capital is expected to be allocated to mature markets and one third to emerging markets.
SPF IV is currently sourcing opportunities for investment.
As of May 2016, SPF IV is approximately 30% committed through five distinct strategies in the Americas, Europe and Asia. When the investment program is finalised, SPF IV’s portfolio is expected to have the following exposure: