Pan-European real estate investment manager Europa Capital has raised €350 mln in a first close of its new open-ended vehicle, the Europa Diversified Income Fund (EDIF), with seed capital from its principal shareholder, Mitsubishi Estate Co., as well as backing from European and Asian institutional capital.
EDIF is focused on creating stable and diversified income through an urban focus on logistics, residential and offices, in particularly across France, Germany, the Netherlands and Denmark.
The initial seed portfolio, totalling €350 mln of net asset value, comprises a mix of logistics, residential and office investments. The portfolio, which has outperformed its market indices to date, is 99% occupied and has recorded 99% rent collection in both Q2 and Q3 2020, demonstrating its resilience during the Covid-19 pandemic, Europa said.
Andy Watson, partner & fund manager at Europa Capital, said: 'EDIF represents a new brand of core fund. With no assets in retail and hospitality and no UK exposure, there are currently no legacies dragging on performance.
'The momentum of this first close will lead to the further growth and diversification of the Fund with a broad range of international investors. Importantly, some two thirds of EDIF’s annual income is in logistics and residential which we see as the most resilient property sectors in this period of unusual uncertainty.'
The Fund has also recently completed the acquisition, in partnership with Keystone Investment Management, of the first of three residential buildings in the Øresund region of Copenhagen.
With accretive leverage, the fund has capital remaining to deploy into further acquisitions to diversify the portfolio.
Rob Sim, managing partner at Europa Capital, commented: 'The launch of EDIF marks a major strategic milestone as we expand and diversify our fund management capabilities beyond value add to core investment leveraging our longstanding track record and expertise as we mark our 25th anniversary.
'EDIF also holds great significance to Mitsubishi Estate as a cornerstone investor and our majority shareholder, adding a European component to their global suite of open-ended core investment products, which already span the US and Asia.'
Europa Capital were advised by Greenberg Traurig.
