Alejandro Adán, Real Estate Partner, and Eduardo Fernández-Cuesta, Partner and Real Estate Manager.
Arcano Asset Management, the asset management division of Arcano Partners, announced today the launch of Arcano Value Added Real Estate III (AVA III) with a fundraising target of €200 million. The strategy behind this fund is to pursue investment opportunities in undervalued and/or underperforming real estate properties with the objective of transforming them into core assets that meet the highest sustainability standards.
Specifically, AVA III invests in residential, hotel, logistics, and office real estate assets, as well as in alternative sectors such as living, data centers, and healthcare. The fund’s geographic focus is on Spain and Portugal, as the market in both countries has offered the highest long-term return scenario in the last decade.
AVA III is an Article 8 compliant fund which seeks to refurbish and transform assets to meet the most rigorous ESG criteria, seeking a positive impact both locally and globally.
Excellent track record
AVA III is the third fund of the same name to be launched by the firm, following the success of its predecessors, AVA I, launched in 2015 with a size of €80 million, a Net Internal Rate of Return (IRR) of 16.3% and which managed to divest all 9 assets in its portfolio; AVA II, launched in 2018, with a size of €130 million, a projected net IRR of 17% and which has divested 3 of the 10 investments made.
The firm also has extensive experience in sustainability, both in the development of its projects and in the management of its investments. In 2022, AVA II obtained a score of 80 points in GRESB, placing it at the top of its competitors in sustainability matters.
In addition, Arcano Partners was the first Spanish independent alternative fund manager to become a member of the United Nations Principles for Responsible Investment (UN PRI), and, specifically, Arcano Asset Management’s real estate strategy obtained the maximum score of 5 stars in its latest assessment of the UN PRI responsible investment principles. These achievements have reaffirmed the firm’s position as a benchmark in sustainable real estate investment in Spain and have contributed to consolidating its international presence.
A specialist team with extensive experience
The fund AVA III will be run by a team of 8 highly qualified managers, who, through Arcano’s Real Estate area, have managed more than 530 million euros in 25 assets. In addition, within the framework of this fund, transactions have been structured through strategic alliances with specialized partners to ensure local expertise, operational synergies, and access to off-market investment opportunities.
“We are very proud to launch AVA III. We have created a solid investment strategy with a differential sustainable approach, allowing us to offer our investors unique and profitable investment opportunities in the Spanish and Portuguese real estate market.”Eduardo Fernández-Cuesta, Partner and Head of Real Estate at Arcano Partners and leader of the fund management team.
“At Arcano Partners, we believe that sustainability is essential to the long-term success of our investments in real estate assets. We are convinced that by focusing on sustainability and responsible investment, we can maximize value for our investors and, at the same time, have a positive impact on the real estate sector and society in general”.Alejandro Adán, Real Estate Partner at Arcano Partners and who is leading the management of AVA III together with Fernández-Cuesta.
About Arcano Partners
Founded in 2003, Arcano Partners is an independent global firm with more than 20 years of experience in international financial advisory and asset management.
Arcano has a team of more than 230 professionals, of more than 16 nationalities, with 7 offices in Europe and the United States, and has become one of the independent firms of reference in the European alternative finance market.