Pan-European real estate investment manager AEW Europe has raised a further EUR 176 mln from institutional investors for its French core retail fund, Fondis. With leverage, the capital raise will provide the fund with a further EUR 320 mln of buying power.
Pan-European real estate investment manager AEW Europe has raised a further EUR 176 mln from institutional investors for its French core retail fund, Fondis. With leverage, the capital raise will provide the fund with a further EUR 320 mln of buying power.
The new capital injection will double the fund's portfolio from EUR 360 mln to some EUR 700 mln when fully invested.
AEW said the French retail sector has proved to be particularly resilient during the economic crisis and is expected to continue to outperform the European retail market overall. 'We see particularly good investment opportunities in town centres and more secondary retail locations in France,' said Stéphane Sebban, Fondis' fund manager.
The fund's strategy is to focus on lot sizes of up to EUR 70 mln, across the spectrum of French retail properties from high street stores, to megastores and retail parks, and shopping centre developments.
Fondis has produced an average annual total return of 14% over the last 10 years and its portfolio currently consists of 50 properties leased to 135 tenants.
