Gramercy Europe has raised €260m from institutional investors for its third industrial real estate fund.

Gramercy Property Europe III will have up to 60% of leverage giving it €650m to invest.

The capital raising took just two months, the investment fund manager said.

Alistair Calvert, Gramercy Europe’s chief executive, said: “I believe that being able to close an all-institutional equity fund in just two months is testament to both our clearly defined investment strategy and our successful track record of acquiring, managing and divesting industrial assets.”

He said the new fund would be in a good position to benefit from the structural drivers underpinning occupier demand for logistics and light industrial assets.  

“Our mandate closely echoes that of our previous funds but with a widened appetite for shorter leases and more involved asset management needs,” he said.

In May, AXA Investment Managers – Real Assets bought Gramercy Europe’s previous fund for around €1bn on behalf of AXA Insurance Companies and its CoRE Europe open-ended fund.

Gramercy Europe said its third fund focused on Continental Europe with a bias towards Germany, France, the Netherlands and Spain.  

It will concentrate on transactions of between €10m and €200m, and aim for a stabilised weighted-average lease term (WALT) of more than five years across a portfolio of 30 to 40 industrial assets.

Gramercy Europe said the logistics and light industrial sector was still benefiting from strong occupational demand from retailers, manufacturers and third-party logistics operators.

There was a structural undersupply of these assets, it said, adding that this was particularly the case for units suitable for e-commerce use.