King Street Closes Oversubscribed European Real Estate Special Situations Fund II

Whats Happening:

King Street Capital Management has successfully closed its European Real Estate Special Situations Fund II (ESS II) at its hard cap of approximately $950 million. The fund reached this target within 12 months, attracting a diverse global investor base. ESS II aims to capitalize on market illiquidity by investing in high-quality, temporarily mispriced real estate assets across Western Europe.

Key Moves:

• King Street closes ESS II at ~$950 million hard cap within 12 months

• Fund targets institutional-grade real estate in Western Europe

• 50% of commitments from re-ups and existing King Street real estate investors

By The Numbers:

• ESS II closed at ~$950 million

• King Street manages over $29 billion in assets

• King Street has completed over $20 billion in real estate transactions

Key Quotes:

• "The strong investor demand for ESS II reflects confidence in King Street's ability to deliver innovative financing solutions in a market where transparency and liquidity remain scarce," - Brian Higgins, Founder and Managing Partner

• "Our strategy focuses on the intersection of quality and complexity, providing capital solutions for trophy assets trading below intrinsic value due to market stress," - Paul Brennan, Partner and Co-Head of Real Estate

Bottom Line:

King Street's successful closing of ESS II at its hard cap demonstrates strong investor confidence in the fund's strategy to capitalize on European real estate opportunities. The fund's focus on high-quality assets in a market with limited liquidity positions it well to potentially generate attractive returns in the current economic environment.

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