Empira Group and Partners Group Launch €1 Billion Pan-European Living Strategy

Empira Group and Partners Group have launched the Empira Pan-European Living Strategy, a closed-end vehicle targeting €1 billion in equity commitments for residential and other living assets in major European metropolitan areas, the firms announced Oct. 1.

The strategy is designed to invest across multifamily residential, student housing, senior living and other living formats, with a primary focus on Germany, the United Kingdom, France, Italy and Spain. A first close is targeted for the third quarter of 2027.

Empira Group and Partners Group Strategy Terms

The Empira Pan-European Living Strategy combines Partners Group's pan-European investment capabilities with Empira Group's vertically integrated residential platform. The firms said that pairing local market knowledge with expertise in sourcing, development and asset management will allow them to pursue opportunities throughout the investment lifecycle.

The €1 billion figure is a target for equity commitments rather than a total acquisition capacity. The strategy's stated terms include:

• Target equity: €1 billion in equity commitments.
• Expected investments: Approximately 20 to 30 investments.
• Portfolio mix: About 50% multifamily residential, with the balance allocated to student housing, senior living, single-family housing and other living strategies.
• Investment types: Existing income-producing assets, development projects, refurbishment programs, and assets offering operational or energy-efficiency improvement opportunities.
• Return target: Net IRR of more than 12% during the investment period.
• Leverage: Maximum portfolio leverage of 60% loan-to-cost during the investment period.
• Term: An initial term of seven years, with possible extensions.

At the 60% maximum loan-to-cost, full use of leverage could imply gross investment capacity of roughly €2.5 billion, although actual portfolio value will depend on financing, asset-level leverage, cash reserves and investment pacing. That figure is an arithmetic implication of the leverage ceiling, not a stated fund size.

Housing Supply Shortage Drives European Living Strategy

In announcing the strategy, the firms noted that across many European metropolitan markets, housing supply has not kept pace with demand. "Living is local. The opportunity is pan-European," the announcement said.

Europe's housing shortage is expected to persist in 2026, with building permits and completions below required levels in many countries. CBRE forecasts 2.4% multifamily rent growth in Europe in 2026 and notes that smaller household sizes are increasing demand for smaller units. Demand for alternative housing products in major urban centers is also rising as affordability pressures and supply shortages intensify, and flex-living and co-living projects, along with conversions from offices and hotels, are expected to expand rental supply.

Student Housing and Alternative Living Sectors

The strategy's multi-sector structure broadens exposure beyond traditional multifamily housing. Multifamily remains the core allocation at about 50% of the portfolio, while student housing, senior living, single-family housing and other living formats make up the remainder.

Student housing supply is limited in several European markets. A GRI Institute report estimates student-bed provision at only 6% to 7% in some pan-European markets, compared with 25% to 30% in the UK. Italy's provision rate is approximately 4%, while the country has about two million students and international enrollment growing by 15% annually. Prime student-housing yields in leading university cities had tightened to approximately 5.0% by September 2026.

Platform Scale and Market Outlook

Empira is a vertically integrated residential investment manager. The combined platform comprises more than 265 real estate professionals across 19 locations and approximately $57 billion of gross asset value.

Because residential returns depend heavily on local factors such as rent regulation, planning constraints, construction costs and tenant affordability, the strategy's allocation across five national markets gives the sponsors exposure to differing regulatory, demographic and supply conditions. Fundraising is expected to begin following the launch, and the €1 billion target is not yet committed capital.

Sources

• Empira Group: Empira and Partners Group launch €1 billion Pan-European Living Strategy