Our Funds

Our Funds

Sparinvest Property Investors uses its extensive network and rigorous process to source, evaluate, select and invest with the best local operating partners. The team focuses on the small- and mid-cap segment with a significant value add potential in order to enhance returns while taking measured risks.

We strongly believe in our strategies and invest significant co-investment capital to secure strong alignment of interest with our clients.

Sparinvest Property Fund

Sparinvest Property Fund (SPF) was launched in 2006 as one of the first global multi-manager funds. Total commitments constitute EUR 480 million.

SPF adopts a core plus strategy with emphasis on mature markets and core assets. 

SPF is fully committed and has had approximately 90% of equity drawn while achieving a significant level of risk diversification: 
  • Exposure to approximately 400 properties through 14 different top tier partners 
  • Investments in 21 countries through five US partners, six European partners and three Asian partners
  • Exposure to more than five property sectors, with a main focus on retail and office

SPF’s portfolio allocation based on committed equity is as follows:

Sparinvest Property Fund II

Sparinvest Property Fund II (SPF II) is a global value add fund, which had its final close in 2011 with EUR 200 million in total commitments.

SPF II targets a net IRR of approximately 12% to investors by investing in the small- and mid-cap segment alongside local operating partners. 

SPF II is fully committed and approximately 80% drawn. Approximately two thirds of the capital are allocated to mature markets and one third to emerging markets. SPF II’s loan-to-value ratio is approximately 45% and it has achieved a significant level of risk diversification: 
  • Exposure to approximately 300 properties through 15 different top tier partners 
  • Investments in 17 countries through six US partners, four European partners and five Asian partners
  • Exposure to more than five property sectors, with a main focus on residential and retail

SPF II’s portfolio allocation based on committed equity is as follows:

Sparinvest Property Fund III

Sparinvest Property Fund III (SPF III) is a global value add fund, which had its final close in 2014 with EUR 317 million in total commitments. 
 
SPF III is a continuation of SPF II’s strategy. The Fund targets a net IRR of approximately 12% to investors by investing in the small- and mid-cap segment alongside local operating partners.
 
SPF III is fully committed and approximately 60% drawn. Approximately two thirds of the capital are allocated to mature markets and one third to emerging markets. SPF III’s loan-to-value ratio is approximately 45% and it has achieved a significant level of risk diversification:
  • Exposure to approximately 300 properties through 14 different top tier partners 
  • Investments in 14 countries through five US partners, four European partners and five Asian partners
  • Exposure to more than five property sectors, with a main focus on residential and retail

SPF III’s portfolio allocation based on committed equity is as follows:

Sparinvest Property Fund IV

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: