Quercus raises €20M for second Madrid retail fund, targeting €50M in deals
What's the deal? Spanish investment manager Quercus InvestmentsDealroom has a profile for this one. Try Dealroom → has closed the fundraising for its second commercial real estate fund, raising €20 million in equity. With financial leverage, that gives the fund €50 million to invest in retail units inside Madrid's M-30 ring road.
Why now? The launch follows the wind-down of Quercus's first commercial vehicle, Project Belén, set up in 2023 with two Spanish family offices. That fund built a portfolio of eight assets for €15 million and delivered a net internal rate of return near 30%, according to the firm.
What's the endgame? Quercus plans to buy larger units this time, priced between €1 million and €3 million each, versus an average of €520,000 in the first portfolio. Chief executive officer Fernando Garnica says the goal is "a more concentrated portfolio of between 15 and 20 assets," which is easier to manage operationally.
The fund targets consolidated neighbourhoods such as Salamanca, Chamberí, Retiro, and Justicia, avoiding prime strips like Serrano and Gran Vía that are more exposed to price inflation. Its timeline sets three years for investing and two for divestment, though Quercus expects to move faster.
Who's backing it? Family offices already active in retail account for 70% of the subscribed capital. The remaining 30% comes from Latin American investors, mainly from Mexico and Colombia, who had previously joined the firm's residential projects.
What could go wrong? Quercus is limiting loan-to-value to 60% per asset and ruling out aggressive debt strategies. Garnica argues that consolidated commercial areas offer more predictable exit prices and less exposure to interest rate swings than the volatile residential market.
The signal: With rapid rotation and mid-sized tickets, Quercus is betting that Madrid's secondary high streets — not its priciest addresses — offer the clearest path to repeatable double-digit returns.
Read more: EjePrime
