Asset manager AEW Europe has announced the launch of a new fund which will target up to €800 mln of investments in high-quality retail assets located in Europe’s tier one cities.
Asset manager AEW Europe has announced the launch of a new fund which will target up to €800 mln of investments in high-quality retail assets located in Europe’s tier one cities.
The AEW Europe City Retail Fund has raised €125 mln of equity from two institutional investors at first close and has a total target fund raise of up to €400 mln in equity commitments which, with a maximum loan-to-value ratio of 50%, will provide it with a total investment capacity of up to €800 mln.
The fund has already secured its first acquisition in Copenhagen and has an active pipeline of further potential investments in place, AEW said in a statement.
'As we continue to expand our fund management platform across Europe, we look forward to applying our core retail expertise to the development of a long-term portfolio through the City Retail Fund that will generate sustainable and stable cash flows for our investors,' said Stephan Boenning, head of Germany and Central Europe for AEW Europe.
Marc Langenbach, director of fund management, commented: 'The City Retail Fund will be investing in high-quality, income-producing retail assets that are well located within those European city centres that we believe are most likely to benefit from the improvement in the European economy and consumer confidence, as well as strong demographic and urbanisation trends.'
AEW Europe has recently carried out a number of acquisitions including the Celsius portfolio, the St Nicholas Shopping Centre in Sutton as well as a number of purchases in Germany with an opportunistic strategy.
The group currently manages more than €17 bn of assets in Europe across a number of funds and separate accounts.
