Curzon/IXIS AEW fund closes at EUR 317 mln

The Curzon Funds Group of real estate investment manager IXIS AEW Europe has announced the second closing of the Euroffice Fund at a total equity of EUR 317 mln - well above the target of EUR 200 mln. The pan-European office fund is dedicated to French institutional investors, including prominent insurers and pension funds.

The group said the initial closing of its PBW II Fund raised EUR 145 mln of equity. This fund invests in office, retail and logistics assets in Central Europe and aims for an internal rate of return (IRR) of 13% triple net. It is the follow-up to the PBW I fund that was created in 2002.

'The key to out success in Central Europe is the fact that we have a had a local presence in the major CE markets for over a decade,' said PBW funds manager Artus Mokrzycki. 'That experience, and the relationships gained, have continual benefits for our clients,' he added. Further closings are expected for both PBW funds.

Curzon/IXIS AEX Europe together with its affiliates in the US and Singapore have approximately EUR 27 bn in gross assets under management. The group employs 230 professionals and has offices in many western European cities, including Paris, London, Barcelona, Milan and Dusseldorf. It also has offices in Prague, Budapest and Warsaw.

The group announced at the end of November that it has completed its 10th acquisition on behalf of the European Property Investors LP (EPI) by acquiring a 42 -asset portfolio located in and around the city of Hanover, in central northern Germany. The vendor was the Hannoversche Volksbank, a division of Volksbanken Group. The bank leased back approximately 85% of the space for a term of over 10 years.

While the financial details of the transaction were not disclosed, the Curzon group said the net yield was approximately 7%.