Unlocking small-cap real estate opportunities in Europe

In today’s evolving European real estate market, success hinges on more than capital. It requires platform reach, local insight, and a disciplined investment strategy. In this Preqin keynote, Jay Patel, Managing Director of Real Estate at Arrow Global, outlines how Arrow is targeting small-cap, off-market opportunities and capitalising on market dislocation through a uniquely scalable platform strategy.

Arrow is focusing on under-the-radar local deals, typically averaging €20–30 million, where competition is minimal, and most transactions are wholly off-market. Jay said: “Our in-country platform infrastructure allowed us to source and execute smaller local deals… in the majority of cases wholly off-market.”

Germany is a particular focus area, where increased deal flow is being driven by market stress. Jay added: “Real estate insolvencies rose by 78% last year, and lenders are struggling to extend financing in the current regulatory framework.” This has enabled Arrow to build a substantial pipeline in residential assets at significant discounts to book value.

“Our founder, Zach Lewy, spent more than a decade building a franchise that now spans 24 platforms across eight countries, making us the only scaled manager capable of delivering small-cap deals at institutional scale.”

Read the full article to see how Arrow Global is driving performance through platform relationships, local access, and disciplined investing.