MGPA opts for quick first close of Europe Fund IV

MGPA has raised about $100 mln (EUR 73 mln) in commitments in the first close of its Europe Fund IV (EF IV). The target size of the fund is $750 mln (EUR 600 mln) of equity with the potential to add 50-60% leverage.

The closing comprised commitments from three investors in MGPA’s previous fund, the $1.3 bn MGPA Europe Fund III.

Laurent Luccioni, MGPA Europe CEO, said the new fund is designed to take advantage of opportunities created by the volatile market conditions. The fund has a two-year investment period in contrast to a three-year period for the previous fund. 'Trying to look beyond two years it is hard to predict what the market will be like.'

MGPA went back to investors in Europe Fund III to raise capital relatively quickly. 'We wanted to be able to have a quick first close so we decided to go for a smaller first raising.'

'The quicker close gives us some capital to invest which I think is important in the current market. Also it is a good signal and a way to get to the next stage.' The fund, Luccioni said, would likely have three to four closings in total, with the second close probably in the latter part of the first quarter next year.

EF IV, like MGPA's previous European funds, will focus on the UK, France, Germany and Poland to take advantage of current market dislocations and recapitalisations.

Similar to MGPA's last 8-9 deals in Europe the target is to acquire assets with a value-add component. The main focus will be retail and office properties. 'The fund has a good pipeline of potential deals,' Luccioni said.

MGPA, an independent private equity real estate investment advisory company, has invested more than $5.7 bn in over 280 properties in Europe.