Key Takeaways
- • Dromeus Capital Group is raising €250 million for its second real estate fund, targeting commercial real estate opportunities in Greece, exceeding the €230 million raised for its inaugural fund.
- • The firm's first Greek commercial real estate fund achieved a net IRR exceeding 25%, demonstrating strong performance in core prime office investments made during the post-recession recovery period.
- • Greece's commercial real estate market exhibits a structural supply-demand imbalance in Grade A office space, driven by a decade of under-investment during the economic crisis, while capital values and rents remain below 2008 peaks but on an upward trajectory.
- • Dromeus Capital Group, founded in 2008 by Achilles Risvas (former Lehman Brothers fixed income professional), operates an absolute return strategy with exposure to European logistics and Greek commercial real estate across multiple asset classes.
- • The larger fund size reflects confidence in "substantial value potential" within the Greek market despite elevated valuations, with the firm capitalizing on the structural mismatch between limited Grade A supply and institutional demand.
Summary
Dromeus Capital Group, a London-based alternative investment manager, is launching a successor fund to capitalize on ongoing commercial real estate opportunities in Greece. The firm is targeting €250 million in equity commitments for its second Greek real estate vehicle, up from €230 million raised for its inaugural fund. This increase reflects management confidence in sustained market fundamentals and available value even as the Greek economy continues its recovery trajectory.
The performance of Dromeus Real Estate Fund I, which operated from 2018 onwards with a focus on core prime office space, has validated the investment thesis. The fund is expected to realize a net IRR exceeding 25%, marking it as a successful opportunistic commercial real estate investment during a period when Greek capital values and rents were at historic lows following the country's decade-long recession. According to the firm's analysis, while both capital values and rental rates remain below 2008 peaks, they continue on an upward path, providing continued investment opportunity.
A critical market dynamic supporting the new fund is a structural supply-demand imbalance in Grade A office space. This mismatch stems directly from the massive under-investment in new development that occurred during Greece's economic crisis. Limited availability of prime office inventory against institutional demand has created the conditions for value creation through repositioning and development initiatives. Dromeus intends to deploy Fund II capital into this dislocated market environment.
Dromeus Capital Group was established in 2008 by Achilles Risvas, a former Lehman Brothers fixed income professional who serves as CEO and global Chief Investment Officer. The firm operates multiple investment strategies including absolute return strategies, real assets, and separately managed accounts. Beyond its Greece-focused commercial real estate platform, Dromeus maintains exposure to European logistics and pursues a diversified alternative investment mandate across both public and private markets for institutional investors.
The performance of Dromeus Real Estate Fund I, which operated from 2018 onwards with a focus on core prime office space, has validated the investment thesis. The fund is expected to realize a net IRR exceeding 25%, marking it as a successful opportunistic commercial real estate investment during a period when Greek capital values and rents were at historic lows following the country's decade-long recession. According to the firm's analysis, while both capital values and rental rates remain below 2008 peaks, they continue on an upward path, providing continued investment opportunity.
A critical market dynamic supporting the new fund is a structural supply-demand imbalance in Grade A office space. This mismatch stems directly from the massive under-investment in new development that occurred during Greece's economic crisis. Limited availability of prime office inventory against institutional demand has created the conditions for value creation through repositioning and development initiatives. Dromeus intends to deploy Fund II capital into this dislocated market environment.
Dromeus Capital Group was established in 2008 by Achilles Risvas, a former Lehman Brothers fixed income professional who serves as CEO and global Chief Investment Officer. The firm operates multiple investment strategies including absolute return strategies, real assets, and separately managed accounts. Beyond its Greece-focused commercial real estate platform, Dromeus maintains exposure to European logistics and pursues a diversified alternative investment mandate across both public and private markets for institutional investors.
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