King Street Capital Management is sharpening its focus on Western Europe’s dislocated property markets following the final close of its European Real Estate Special Situations Fund II, which hit its hard cap at approximately $950 million after a swift 12-month raise. 

The new fund will pursue opportunities in “high-quality assets that are temporarily mispriced due to market illiquidity rather than weak fundamentals,” the firm said, pointing to its conviction that current market stress across parts of Europe is creating compelling entry points for patient capital. 

Notably, King Street reported that about half of total commitments came from investors re-upping from its prior ESS fund and long-standing King Street real estate investors—an endorsement of its thematic, event-driven approach to special situations. 

“The strong investor demand for ESS II reflects confidence in King Street’s ability to deliver innovative financing solutions in a market where transparency and liquidity remain scarce,” said Brian Higgins, founder and managing partner. 

Recent transactions on King Street’s real estate platform illustrate its diverse, pan-European footprint, including stakes in the Four Seasons Rome, the Bauer Hotel Venice, Room00 student housing, Arlington House St. James, and Bravo! Students. 

Headquartered in London, King Street’s global alternatives platform oversees $29 billion in assets spanning public and private markets. Its dedicated real estate business, active in both debt and equity, has invested more than $20 billion since inception—specializing in capitalizing on stressed market dislocations and thematic sector trends.