Tristan secures EUR 170m for European recovery fund

Tristan Capital Partners has raised over EUR 170 mln of equity commitments in a first closing of its European recovery strategy fund.

European Property Investors Special Opportunities 3 (EPISO 3) was launched to target investment opportunities stemming from economic restructuring in distressed European markets where equity and debt capital are in short supply.

The fund has an unleveraged target equity volume of EUR 750 mln, but has completed an early first close just four months after its marketing launch with support from five previous institutional investor clients and two new investors. The early first closing of EPISO 3 was held to provide capital for the acquisition of two assets in the UK and Germany for which the fund has secured exclusivity.

EPISO 3 will invest in Western and Central European markets across the office, logistics, retail and residential sectors. The fund's strategy is to target investment returns of between 15%-18% for a four to eight-year investment period and with a maximum leverage of 60% loan-to-value.

Ric Lewis, CEO of Tristan Capital Partners, said: 'Tristan never subscribed to the prevailing market view during the Eurozone financial crisis that predicted the end of the EU and the European monetary union. To the contrary, we believe that the severe risk aversion of many investors, combined with an enduring shortage of equity and debt capital and a historically low volume of new developments, have combined to create a favourable investment environment in Europe.'

Tristan's most recent fund Curzon Capital Partners III (CCPIII) a core-plus fund, completed a final closing in February 2012 after raising EUR 420 mln in equity. Tristan has since committed more than 70% of this fund's equity capital through 17 transactions and acquired over EUR 1 bn in assets across Europe.

Click on the link below to read: 'Tristan fund buys mall in eastern Germany'