AEW Europe has raised more than €415 mln in equity from international institutional investors for the Europe City Retail Fund, exceeding the initial target of €400 mln.
The equity raised from several international institutional investors provides the fund with a total investment capacity in excess of €800 mln. Following significant demand for the fund, AEW is in discussions with a number of investors and expects to further increase the level of equity commitments to up to €800 million over the next few years.
Europe City Retail Fund has already invested €200 mln across Europe, having raised €125 mln of equity at its first close in November 2015. The fund's portfolio includes prime high street assets on Via del Corso, Rome and on the Østergade in Copenhagen.
The fund's strategy is to build a portfolio of high quality, income-producing retail assets that are well located within the main European city centres, and have a maximum loan-to-value ratio of 50%.
Christina Ofschonka, fund manager for City Retail Fund for AEW in Germany, commented: 'Since the launch of City Retail Fund in November 2015, we have been focused on investing in assets in prime locations which we believe have the potential for income growth over the short to medium term. We have already invested around €200 mln in a range of assets across Europe including in Copenhagen, Rome and Madrid and have a further €400 mln of investments under exclusivity in France, Italy and Germany, which will allow us to both grow and further diversify the fund’s portfolio.'
