Equity Residences Launches New European Luxury Real Estate Investment Fund

Building on the success of its three previous private equity funds, Equity Residences recently announced its new Equity Euro Fund. This luxury real estate investment fund is acquiring a dozen elegant vacation homes in some of Europe’s most desired destinations.

Equity Residences Background

Equity Residences was founded in 2012 and has more than $100 million under management. Its investors have enjoyed thousands of rent-free vacations in a portfolio of homes that spans North America, Central America, the Caribbean, and Europe, while receiving investment returns from real estate appreciation.

“What I love most about our business is investors telling us how Equity Fund vacations bring their families and friends together to create lifelong memories,” said Greg Salley, managing director of Equity Residences. “And it’s gratifying that satisfied investors from our existing funds were quick to sign up for the Equity Euro Fund and support our continued expansion across Europe.”

New Equity Euro Fund

The Euro Fund is raising €33 million to buy 12 vacation homes in prime locations such as: Lake Como, Italy; Coastal Italy; Tuscany, Italy; Bordeaux, France; Dubrovnik, Croatia; Algarve, Portugal; San Sebastian, Spain; Madeira, Portugal; Nice/Cannes, France; Dolomites, Italy; Sardinia, Italy; Innsbruck, Austria. The residences will range in value from €1,500,000 to €3,500,000 and will be sited in a variety of beach, city, mountain, and countryside locations.

The entry level share price for accredited investors is €239,500.

Equity Euro Fund investors have access to rent-free vacations at all of the homes across each of the Equity Residences funds. This includes stunning residences in Mexico, Costa Rica, Belize, Anguilla, Italy, Spain, Greece, the Bahamas, Turks & Caicos, Dominican Republic, the BVIs, and multiple beach, urban, and mountain locations in the U.S. The homes typically range between three and six bedrooms, providing plenty of space for family and friends to travel together.

Equity Residences told SherpaReport that they already have commitments from 20 founder investors for this fund, and 17 of them are also investors in other Equity Residences funds. Based on this early momentum, the management team is already scouting for the first couple of homes to acquire for the fund.

The other fund, which is open to new investors, is the Equity Platinum Fund 2. This focuses primarily on North American destinations and is available with a standard investment of $327,750.

All the Equity Residences funds offer personal concierge services, including organizing personal chefs, a pre-stocked refrigerator, and sports and leisure equipment.

Fund investments are purchased for a 10-year utilization period, followed by the liquidation of the portfolio. Equity Residences targets a 150% return of capital when the homes are sold and sales proceeds are distributed to investors.

“During the ten-year utilization period, the value of rent-free vacations alone can exceed the fund investment,” said Greg Salley.