Tristan Capital fund holds final close at EUR 420m

Pan-European real estate investment manager Tristan Capital Partners has completed a fourth and final capital close for its CCP III LP Fund, raising EUR 420 mln. A total of 13 institutional investors from a range of nationalities have invested in CCP III, including Germany, the Netherlands, Finland, the UK, the US and Singapore.

The fund is already around 40% invested and 65% committed, the company said.

'Many managers are struggling to raise capital because they’re forced to solve for unrealistically high opportunistic returns in European real estate markets,' said Tristan's CEO Ric Lewis. 'We said at the launch of the CCP III Fund that the current market environment lends itself more to moderate risk versus return, core plus/value add strategies and this has been proven by the fact that we’ve already successfully invested over 40% of the equity raised in the last several months.'

Lewis expect two-thirds of the fund's equity capital to be committed by the end of the second quarter of 2012.

Since its launch in the spring of 2011, CCP III has acquired a retail/residential complex in Düsseldorf, Germany for EUR 34 mln; a new office block in Glasgow, Scotland for EUR 23 mln; a high-street retail shopping centre in the UK for EUR 38 mln; a pan-European logistics developer for EUR 100 mln as well as six Czech logistics parks for EUR 135 mln.

In addition to the investments detailed above, Tristan has secured exclusivity on a further EUR 440 mln of deals in Germany, France, Poland and Austria which would bring the equity committed to 65%.

Monica O’Neill, head of Client Relations, said: 'Tristan decided to hold an early final capital close on CCP III, just eight months after the first close. Although there were more institutional investors interested in participating, we decided to cap our marketing efforts below the fund’s hard cap of EUR 500 mln to focus on deals we have in our pipeline and manage the already substantial portfolio we’ve built for investors.'