Luxembourg-based investment manager ECE Real Estate Partners has launched a new preferred equity fund.
The ECE Preferred Equity Fund (EPEF) has secured capital commitments of more than €100 mln from institutional investors, to date. It targets long-term investors seeking high income, regular distributions and downside protection in a market undergoing structural changes.
The fund is backed by the acquisition of three German shopping centres, worth more than €500 mln.
ECE issued a €100 mln bond to finance the acquisition of the portfolio. It features a total leasable area of 125,000 m2 and 270 shop units, attracting more than 17 million visitors a year. Two of the neighbourhood shopping centres are located in Berlin and the third is near Stuttgart.
Volker Kraft, managing partner of ECE, said: 'During the recent months, with a significant offering of everyday necessities the three centres have impressively demonstrated the resilience of neighbourhood retail destinations as an asset class. Our bond has received an investment grade rating, underlining the high quality of the portfolio.'
