Meyer Bergman has raised €750m from institutional investors for its second European retail property fund.
The investment manager said the final close of its European Retail Partners II fund attracted 15 pension funds, endowments, and asset managers from Asia, Europe, the Middle East and North America.
Earlier this year, New Jersey Division of Investment said it was considering a $50m (€36.8m) commitment to the fund. Virginia Retirement System has also committed €60m to the fund, in which Meyer Bergman is co-investing up to 2% or €10m.
The fund, which is investing in dominant retail assets in need of asset management, has already deployed 50% of the total equity raised.
Meyer Bergman said the fund had bought 10 properties so far, investing in the centres of Berlin, Copenhagen, London and Paris.
Markus Meijer, chief executive of Meyer Bergman, said unfilled demand from global investors reflected the attraction of properties in Europe’s major shopping destinations.
Meijer said: “Europe’s real estate markets present attractive opportunities – particularly for our value-add focus on retail properties.
“Banks are getting to grips with their lending portfolios, bringing more assets onto the market that need fixing or repositioning.”
As previously reported, projected net IRR for the fund is 18%, with a 1.7x net equity multiple on invested capital.