Development
Residential and mixed-use schemes with planning secured or credibly progressed. Underwritten on cost certainty, contractor strength, presales and a permitted exit — not on a terminal yield assumption.
Strategy 02 · Real assets
Real estate projects within the EU
Project-level equity and structured participations in European Union real estate, held through a dedicated SPV inside an alternative investment fund or compartment. One project, one vehicle, one clear line of sight for the investors in it.
Development risk is local. That is why our coverage is regional and why we underwrite the sponsor as carefully as the site.
- Asset types
- Residential, mixed-use, light commercial, selective hospitality and logistics
- Geography
- Slovenia, Adriatic region, Central Europe, DACH — EU only
- Position in capital stack
- Project equity, joint-venture participations, structured mezzanine-style exposure
- Structure
- SPV per project, ring-fenced compartment, professional investors only
The exposures
Three project profiles, three risk shapes
Repositioning
Existing stock with a defined works programme: energy performance upgrades, change of use, re-letting. Shorter duration than ground-up development, with residual value if the plan slips.
Income assets
Let assets acquired for cash flow, with lease quality, tenant covenant and capital expenditure schedule as the primary tests. Suited to investors who want distribution rather than development risk.
Underwriting
What we test before a project reaches a fund
A project that fails any of these does not improve by being priced differently. We would rather give a sponsor a quick no than a slow maybe.
Sponsor track record
Completed schemes of comparable type and scale, and evidence of how the sponsor behaved when a previous project went wrong.
Title, planning and permits
Clean title, land register position, planning status and the realistic path for anything still outstanding — reviewed by local counsel.
Cost and contract structure
Contract form, contingency, fixed-price scope, contractor solvency and who carries overrun. Monitored by an independent surveyor during build.
Exit before entry
A documented sale or refinancing route with evidence of comparable transactions, plus a downside case that does not depend on the market improving.
Capital structure discipline
Senior debt terms, covenants and intercreditor position understood before the fund commits, with leverage limits written into the investment policy.
Regulatory and energy compliance
Building regulations, energy performance obligations and environmental constraints treated as cost lines, not as risks discovered later.
Structure
One project, one vehicle
Investors in a scheme should be exposed to that scheme. Compartmentalisation is not an administrative preference — it is what allows a single project to fail without dragging others with it, and what lets an investor exit one exposure without unwinding a portfolio.
Layer 01
The fund
An AIF managed by BLK Finance with its investment policy, valuation policy and reporting cycle.
Layer 02
The compartment
A ring-fenced sub-fund per strategy or project group, with its own investor register and NAV.
Layer 03
The SPV
A project company holding the asset, its financing and its contracts — the level at which risk is contained.
Questions about EU real estate funds
How does a real estate AIF differ from investing directly?
A fund adds a regulated manager, a written investment policy, independent administration and audit, a defined valuation methodology and consolidated reporting. Direct investment gives more control but leaves the investor to build that governance and to hold single-asset risk without a framework around it.
Which European markets do you cover?
Markets our team can reach and monitor in person: Slovenia, the Adriatic region including Croatia, Central Europe and the DACH markets. The coverage is regional by choice — development risk does not travel well.
Can a developer raise capital through your fund?
A sponsor can present a project for assessment; if it fits a fund we manage it is typically held in a dedicated SPV or compartment. We do not act as a placement agent for third-party sponsors and we do not provide investment advice — we act as manager of the fund.
Risk note: real estate investment carries development, construction, planning, permitting, market, valuation, tenant, interest-rate, leverage, liquidity and concentration risk. Property is illiquid, values can fall, projects can be delayed or abandoned, and invested capital can be lost in full. Nothing on this page is an offer or a recommendation; fund-specific terms and risk factors are set out only in the relevant fund’s documents.