TH Real Estate has launched an open-ended property fund targeting European cities.
The investment manager said TIAA allocated it an initial €200m for the European Cities fund.
The co-investment capital will be invested alongside other founder investors, which the firm said were currently in due diligence.
TH Real Estate is aiming to raise up to €5bn by 2021 for the fund, targeting assets in 42 cities offering long-term growth.
Retail assets, as well as office and logistics properties, will be the fund’s main focus.
Alice Breheny, global co-head of research, said the fund had a city-based real estate strategy, underpinned by long-term, structural trends.
Geared at 40%, the fund, structured as a Luxembourg special limited partnership, will aim for an average 30% loan-to-value ratio.
The fund is assembling a seed portfolio of investments in ‘future-proof cities’ across Europe, having monitored and rated 200 cities for their quality of life, urbanisation and population factors.
Isabelle Scemama, head of funds, told IPE Real Estate the fund would focus on “cities and not countries”.