Patrizia Immobilien’s seventh European property fund has raised half of its €500m target at second close the manager said, adding that it is currently reviewing a further €200m of possible commitments.

The TransEuropean (TEP) VII fund received €250m from a diverse group of institutional clients in the UK, the US, Asia and Finland, with over 30% of commitments coming from clients who are new to the TransEuropean series.

Patrizia said a further €200m in equity is currently in due diligence with the fund targeting €500m, ultimately providing €1.2bn of firepower with leverage.

TEP VII will pursue a cash-flow driven, value-add strategy primarily across the office, industrial and residential sectors in continental Europe and the UK.

Since the launch of TEP VII and its first close of €100m in April 2018, five investments across Madrid, Paris, Barcelona and Berlin, totalling an estimated €200m have been made.

Paul Hampton, Patrizia’s head of international fund management and director of the TransEuropean series, said: “To have secured 50% of the TEP VII’s target equity at this point, while also welcoming two new clients to the programme, is extremely pleasing, particularly against the backdrop of a competitive marketplace where institutional investors have choice.”

Hampton said the manager now has good visibility on the shape of the fund’s initial portfolio and clear appetite from additional investors, and are confident of achieving its final close within the planned timeframe.

“In executing the fund’s first few investments, we have followed several carefully selected themes across a number of dynamic European markets which we have been operating in for many years.

“The political picture across Europe, however, continues to evolve and therefore we will not be rushing our equity deployment.”