CBRE Investors raises EUR 542m for pan-European fund

CBRE Investors Global Multi Manager (GMM) has raised EUR 542 mln of equity from 22 UK pension funds for its continental European Alpha Fund. GMM is a division of CBRE Investors that invests in unlisted funds worldwide and has mandates totalling $3.5 bn (over EUR 2.5 bn). GMM hopes that the Alpha Fund, a fund of funds with a finite life of 12 years, will achieve a total annual return of 8-10%.

The Alpha fund will focus on retail and industrial property across Europe, excluding the UK, and invest in 15-18 funds. Commitments totalling EUR 213 mln have already been made to 11 funds, and it is expected that the fund will be fully invested within two years. Alpha is GMM's second pan-European fund of funds, following the launch of the PREFF fund in 2005. GMM plans to launch Alpha Fund II, with a similar strategy, in the autumn. Commenting on the announcement, GMM managing director Jeremy Plummer said that there was a growing trend for UK institutional investors to invest more of their property portfolios internationally as domestic market prospects thin out.