A syndicate of underlying investors in the AEW Europe City Retail Fund have appointed an alternative fund manager to take over as manager.
Columbia Threadneedle, which has won the mandate, did not disclose the incumbent manager, but in a statement said the City Retail Europe Fund consists of 23 high-street assets across 11 countries mirroring the profile of the AEW’s product.
The fund is of 2015 vintage, located in Paris, with a core return profile.
Columbia Threadneedle Real Estate France now manages over €2bn of high-street retail assets across Europe, it stated.
The addition of the City Retail Europe portfolio, valued in excess of €600 mln takes the team’s assets to over 50 high street properties and over €2 bn under management[2] in high-street retail properties alone. Globally, this new mandate takes assets in the retail sector to over €6 bn.
The properties held within the City Retail Europe Fund are located at some of the world’s most coveted addresses and in thriving cities, including Madrid, Barcelona, Lisbon, Porto, Milan, Rome and Copenhagen. These destinations have seen a strong rebound in tourism post-Covid, with growth momentum expected to continue over the coming years.
Ian Kelley, MD, Head of France, Benelux & Southern Europe at Columbia Threadneedle Real Estate, said, ‘We are honoured to have been appointed to manage the City Retail Europe Fund, a portfolio of 23 assets across some of Europe’s most flourishing cities’
‘Most of the properties benefit from prime locations, which appeal to premium international brands and retail tenants, eager to distinguish themselves from the competition. We see great potential in optimising the portfolio through a mixture of refurbishments, adapting for mixed use, refinancing and continuing to provide excellent showcase stores to current and new tenants.’
‘Through this deal, the Real Estate team in France becomes one of the largest managers of high-street properties in Europe. This is credit to our dedicated team with its extensive high-street expertise and our capacity in delivering value for our clients.’
