AEW UK has announced that its urban real estate fund (UREF) has completed its final closing, having secured £171 mln (€202 mln) of investment from institutional investors.
In addition, an initial £30 mln debt facility has been secured.
To date, the fund has invested in nine retail assets, committing £133 mln of capital and has a further three assets under offer totalling £16.2 mln.
UREF is the second UK value add fund launched by AEW following the success of the South East office fund.
Nick Winsley, AEW managing director and senior portfolio manager, UREF, said: 'As the UK high street accelerates its shift away from retail towards mixed use units, there is an opportunity to repurpose assets and support the re-generation of town centres.
'We are delighted with the take-up from investors and would like to thank them for their strong support as we work with local authorities and explore options to ensure that these assets continue to meet the changing needs of the town centres in which they are located.'
The fund targets underutilised retail assets located in urban areas in the South of England and major UK conurbations. AEW’s strategy is to actively manage the income stream and drive returns through asset management, which includes refurbishment, repositioning and possible change of use or extension.
The fund’s strategy covers a range of uses including health and fitness, entertainment and leisure, food and beverage, health care, living, offices and hotels.
Acquisitions to date include assets located in Bristol, Windsor, Reading, Brentwood, Coventry and Watford.
Charlie Royle, AEW director and portfolio manager, UREF, said: 'We are excited by the opportunity that currently exists in the sector and the ability to support social change in the urban environment, working with Local Authorities and key stakeholders.
'Through careful investment and diligent asset management we aim to secure the fund’s target returns for our investors, whilst addressing the needs of local communities.'
