Europa Capital’s open-ended core diversified income real estate fund has raised an initial €350m with backing from European and Asian institutional investors.
The investment manager said the Europa Diversified Income Fund’s (EDIF) first close was backed with seed capital from its parent company Mitsubishi Estate as well as cornerstone institutional capital from both Europe and Asia.
The EDIF fund targets logistics, residential and office investments that can provide stable and diversified income and the plan is to grow the vehicle to over €2bn in the coming years. The fund will primarily target countries like France, Germany, the Netherlands and Denmark.
Europa said the fund’s initial seed portfolio, with a €350m net value, comprises a mix of logistics, residential and office investments, adding that EDIF has capital remaining to deploy into further acquisitions to diversify the portfolio.
The current portfolio is 99% occupied and has recorded 99% rent collection in both the second and third quarters of this year, the manager said.
Andy Watson, partner and fund manager at Europa Capital, said: “EDIF represents a new brand of core fund. With no assets in retail and hospitality and no UK exposure, there are currently no legacies dragging on performance.
“EDIF is a fund that blends the principles of core investment with elements of value generation, leveraging Europa Capital’s 25-year track record in value add asset management.”
Rob Sim, managing partner at Europa Capital, said the momentum of this first close will lead to the further growth and diversification of the fund with a broad range of international investors.
”Importantly, some two-thirds of EDIF’s annual income is in logistics and residential which we see as the most resilient property sectors in this period of unusual uncertainty.
“The launch of EDIF marks a major strategic milestone as we expand and diversify our fund management capabilities beyond value add to core investment leveraging our longstanding track record and expertise as we mark our 25th anniversary.”
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