China’s Fosun Property and Resolution Property are teaming up to invest in European value-add real estate.
The Resolution Property Investment Management (RPIM) joint venture will invest in Resolution’s fifth fund, which will target assets in need of repositioning over the next four years.
The fund, expected to be Resolution’s largest to date, will have a seven-year life. Resolution’s previous funds have raised as much as €800m in equity.
The London-based firm declined to confirm the size of the fund, or targeted returns.
Robert Laurence, chief executive at Resolution Property, told IP Real Estate: “The returns we are aiming for are very achievable.”
Resolution will work exclusively for Fosun, which will provide cornerstone funding for future funds.
Laurence said the company would seek the backing of third-party institutional investors from the US and Asia for the fund, which will target major European cities, including Amsterdam, Berlin and Stockholm.
“There are plenty of opportunities outside London and outside the UK,” Laurence said. “London is certainly crowded right now.
“It would be hard to find cities where the momentum of London office rental growth is replicated.”
The firm is targeting large, mixed-use offices in cities with creative and digital sectors, as well as the retail sector.
Resolution has typically sold residential units in the UK and held refurbished, rent-controlled apartments in Continental Europe.
For Fosun, the RPIM joint venture will help build its “global investment capability”, said Xu Xiaoliang, vice-president of Fosun Group and president of Fosun Property.
After acquiring IDERA Capital in Japan last year, Fosun had focused on finding “experienced and professional overseas investment and management platforms”.