Rockspring holds final close for EUR 700m fund

Rockspring Property Investment Managers has announced the final closing of TransEuropean Property Limited Partnership V after having raised higher-than-expected equity commitments of over EUR 350 mln.

This was the largest equity raise to date for the TransEuropean fund series which was first launched 20 years ago.

Commitments have been received from a diverse investor base comprising five new and seven existing institutional investors from Europe, the Middle East, Asia and North America.

With an ability to invest EUR 700 mln gross over its eight year life, the fund will seek to exploit continuing distress, value weaknesses and market dislocation across its target markets. TransEuropean V will identify core/core+ and value-add real estate assets where Rockspring sees a clear market-led drop in valuation and which offer the potential to enhance capital and income value through asset management initiatives.

The fund’s key target areas will be the mainstream sectors (retail, office and industrial) in the ‘core’ Western Europe of Germany, the UK, France, the Nordics, Switzerland and Poland.

To date, the fund has acquired a portfolio of six retail assets in Sweden for EUR 82 mln, and the Löwen Center in the German city of Leipzig for EUR 37 mln. Two further transactions are in exclusivity and a strong pipeline of further investment opportunities are currently being evaluated, according to Rockspring.

'There is no doubt that 'equity will be king' in the year ahead, but good returns will only be secured by experienced investors who have detailed understanding of the nuances of the local markets and have a track record of de-risking their carefully selected investments through the application of skilled fund and asset management,' commented Rockspring CEO Robert Gilchrist.