ECE raises €740m for 2nd European mall fund

German retail specialist ECE has raised €740 mln of equity commitments for its newly launched European Prime Shopping Centre Fund II.

Investors in the fund, which is targeting equity of €850 mln and a total size of €2 bn after leverage, include sovereign wealth funds, pension funds and insurance companies from Europe, Asia, and the US.

ECE Fund II will continue the investment strategy of ECE Fund I and focus on acquiring existing European shopping centres with value-add potential. Its investment period will end in 2018.

The vehicle has already made its first purchase with the acquisition of the Stern-Center mall in downtown Lüdenscheid (North-Rhine Westphalia) from Irish investors.

Opened in 1977, the centre has been managed by ECE since 1991. It comprises a sales area of 30,000 m2 on four levels with a total of 110 specialist stores.

In November the fund will also acquire Zielone Arkady in the Polish city of Bydgoszcz, which was developed by ECE.