Missouri LAGERS invests €75m in new Europa value-add property fund

Missouri Local Government Employees Retirement System (LAGERS) has approved a €75m commitment to Europa Capital’s sixth pan-European value-add real estate fund.

Brian Collett, the pension fund’s CIO, told IPE Real Assets that Europa Fund VI has fundraising target of €750m and a hard cap of €1bn.

The predecessor Europa Fund V raised €716m in February last year.

The $8.1bn pension fund invested €35m in Europa IV and €50m in Europa V.

“We are pleased with the performance from their previous two funds that we participated in,” said Collett.

Europa VI will invest in residential, office, industrial and retail properties in France, Germany and the UK.

The fund, which will have a 65% leverage component, will target a 15% net internal rate of return.

Missouri LAGERS has also approved a $75m (€68.5m) commitment to Fireside Real Estate Partner IV, a US regional fund which is reportedly seeking a £300m fundraise.

“This commingled fund is buying assets in markets in the Midwest that not a lot of funds are buying in now,” Collett said. “This includes Illinois, Indiana, Kentucky and Tennessee.”

The fund manager Fireside Financial expects to buy mostly multifamily and self-storage with some office buildings.

Missouri LAGERS said it had made a $75m investment in Related Real Estate Fund III, an opportunistic US property fund managed by Related Companies.

The fund’s capital-raising target is currently unknown. Its predecessor raised $1bn in 2015.

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