#MIPIM2016 Gramercy sees European fund growing to €4b

Gramercy Europe, a wholly owned subsidiary of US REIT Gramercy Property Trust, aims to grow its European fund to up to €4 bn, Alistair Calvert, managing director and head of investments at Gramercy Europe, said at MIPIM.

'The Gramercy Property Europe fund is not yet a year old but we plan to invest between €600 mln and €800 mln a year until it's between €3 bn and €4 bn,` he said.

Gramercy aims to invest around 50% of the fund in Germany with an additional 30% in the Netherlands, Calvert said. The remaining 20% can include investment in markets such as Poland, according to Gordon Dugan, CEO of Gramercy Property Trust.

'Polish logistics, for example, are a core holding for us. There is extraordinary appetite there, it`s the biggest surprise for us,' Dugan said. 'It's also less expensive as a logistics hub than Germany,' he added.

The fund is also looking to ramp up exposure to France this year, Calvert said. 'We`re very opportunity driven…we're looking outside the 'Big 7' cities in Germany and also at France.'

The fund has an annual equity yield target in excess of 10%.