AEW Europe's City Retail fund raises €415m and doubles target
AEW expects to get equity commitments for its Europe City Retail Fund of up to €800m over the next few years, having raised over €415m already, more than its initial target.
Launched in late 2015, the fund was initially aiming to raise €400m of capital.
Marc Langenbach, head of funds for the investment manager in Germany, said: “To have exceeded our initial fundraising target is a clear sign of the ongoing demand for good quality income-producing retail assets throughout Europe, and a strong endorsement of our investment strategy to date.”
The firm will now try to carry on finding the best investment opportunities in Europe’s main cities, he said.
The money now committed came from several international institutional investors, AEW said, giving it a total investment capacity of €800m with 50% leverage.
“Having received significant levels of demand for the fund, AEW is in discussions with a number of investors and expects to further increase the level of equity commitments up to €800 million over the next few years,” AEW said.
The retail property fund has already invested €200m after raising €125m at its first close in November 2015, the firm said.
The portfolio now includes prime high street assets on Rome’s Via del Corso and Østergade in Copenhagen, it said, adding that it had a further €400m of investments “under exclusivity” in France, Italy, and Germany.