Rockspring Property Investment Managers’ seventh European property fund has raised €100m at first close.
TransEuropean Property Limited Partnership VII (TEP VII), which expects to raise €500m, has received the initial €100m from two investors from the UK and the US.
The manager said gearing has been set at 60%, suggesting potential firepower of up to €1.2bn.
The two investors have supported the fund series over its 26-year life, Rockspring said, adding that a number of other investors are presently in due diligence.
Like its forerunners, TEP VII will pursue a cash-flow driven value-add strategy primarily across the office, industrial and residential sectors in continental Europe and the UK.
Rockspring said TEP VI, which closed in 2016, is fully invested well ahead of schedule and the latest fund hopes to be able to close in on a growing pipeline of compelling investment opportunities.
Earlier this month, Rockspring also announced that TEP V has sold almost 85% of its assets as the fund reaches its end of life.
Paul Hampton, a partner at Rockspring and fund director of the TransEuropean series, said: “To be announcing our first closing at this point is clearly fantastic news, something that is a testament to the strategy which has been designed to suit the current market and the longevity and commitment of the senior management team.
“With an even deeper pool of local resources at our disposal following the tie-up with PATRIZIA, we are excited about the prospects for TEP VII as we look forward.”
Rockspring first launched TransEuropean I in 1992 and has since invested just under €3bn in 13 European countries.