Real Estate Equity

Our strategic advantage in real estate equity

Arrow’s real estate equity strategy is centred on generating opportunistic returns by acquiring granular, off-the-run properties with significant value-add and repositioning potential. Often sourced from stressed sponsors or lenders, these assets offer opportunities to unlock value through operational improvements, repositioning, and capital enhancement. Arrow’s approach is designed to capture market inefficiencies and deploy hands-on asset management to deliver superior returns, with sourcing and execution driven through its expansive local platform network.

Real Estate Strategy

• Arrow’s real estate equity approach targets:
• Granular off-the-run properties
• Assets needing capital and operating expertise
• Opportunities sourced through Arrow’s local platforms

By leveraging its in-market presence, Arrow is able to identify and act on complex, under-the-radar real estate transactions that require tailored business plans and active asset management. This targeted strategy allows Arrow to unlock upside in properties that may be overlooked by more traditional or volume-focused investors.

Market Opportunity

Despite macroeconomic challenges such as elevated interest rates and tighter liquidity, underlying operating fundamentals remain strong across Arrow’s focus sectors:

• Residential
• Last Mile Logistics
• Leisure
• Hospitality

At the same time, valuation pressure and refinancing difficulties have created a growing pipeline of distressed or transitional real estate assets, ripe for repositioning by investors with operational capabilities and capital readiness. This dislocation between asset fundamentals and capital availability presents a compelling window for opportunistic real estate equity investment.

Platform and Track Record

Arrow brings nearly 20 years of experience in European real estate, supported by:

• €18+ billion in assets under management (AUM)
• 16 local real estate platforms across Europe
• 1,100+ professionals

This extensive infrastructure supports end-to-end value creation—from local sourcing and underwriting to execution and repositioning strategies. Arrow’s real estate equity capabilities are formalised through its Arrow Real Estate Opportunities (AREO) fund series:

• AREO I (2023)
• AREO II (2024)

These funds provide institutional investors with access to Arrow’s high-conviction real estate equity pipeline across core European markets.

Competitive Advantage

Arrow’s edge lies in its deep local market access and active ownership mindset. Key differentiators include:

• On-the-ground origination through 16 local platforms
• Decades of experience in distressed investing, workouts, and restructurings
• A senior investment team with operational and transactional depth across real estate cycles

Arrow’s ability to operate at a granular level, combined with its capital and asset management capabilities, positions it to extract value from assets that require more than just capital—they need expertise, execution, and a vision for transformation.