Rockspring Property Investment Managers has raised €87 mln in new commitments for its German Retail Box Fund (GRBF), PropertyEU can reveal.
Secured from four existing investors within a three-month period, the new equity exceeds the fund's initial target for this fundraising operation. The capital, together with available bank financing, will be invested in the fund's re-development programme over the next three to five years.
'To have received significant support from our existing investors is a clear endorsement of how resilient the sector and chosen strategy have proven since the global financial crisis,' said Martin Trodden, European director at Rockspring and manager of GRBF. 'We have a strong belief in the sub-sector, which we expect to continue to deliver strong returns going forward.'
GRBF was launched in 2005 in partnership with Düsseldorf-based Prime Management. The fund invests exclusively in large floor plate, grocery-anchored German retail assets to benefit from long-term income and growth.
The fund has a gross asset value of almost €1 bn and has maintained high average portfolio occupancy rates of between 94-98% since the launch. This has enabled the partnership to distribute just under 7%, on average, to its investors since inception.
Oliver Krämer, head of asset management at Prime Management, added: 'Over a number of years, we have worked exceptionally hard to develop strong tenant relationships and this capital enables us to continue to invest into our standing portfolio.
'Through the refurbishment and modernisation of some of the more dated buildings – many of which we have already secured pre-lets on ahead of redevelopment – we will be able to strengthen the portfolio’s overall credentials in terms of its income security, tenant diversity and, ultimately, net operating income.'
