UK-based property investor GPT Halverton has set up its first retail property fund, the German Retail Property Fund (GRP), after raising a total of EUR 136.5 mln in equity among institutional European and international investors.
UK-based property investor GPT Halverton has set up its first retail property fund, the German Retail Property Fund (GRP), after raising a total of EUR 136.5 mln in equity among institutional European and international investors.
The strategy for GRP is to aggregate a significant portfolio of predominantly food-anchored retail properties across Germany that have short-term value enhancement potential through active management, with a view to providing investors with a combination of income and capital growth.
The fund will own an initial portfolio of 30 assets totalling approximately EUR 80 mln and due diligence is under way on a further 15 assets totalling EUR 50 mln. It has a target total portfolio size of up to EUR 300 mln.
GRP is a closed-end unlisted fund and has an initial life of six years with two one-year extensions subject to investor approval. Debt has been secured with Deutsche Bank with an LTV of 60% and interest rate hedging is in place for the life of the fund.
Consistent with its policy to maintain a co-investment of up to 10%, the GPT Group has invested approximately 7% of the equity, through a EUR 10 mln co-investment.
GRP is the fifth fund to be established by GPT Halverton since its inception in 2004 and brings total assets under management to EUR 1.7 bn (excluding assets held to seed future funds).
