Whitewood launches Central Europe real estate fund

Whitewood Capital has expanded its presence in Central Europe with the opening of an office in Prague. The Antwerp-based private equity real estate asset manager said the move underpins the launch of a core-plus, value-add commercial real estate fund.

The aim is to raise an initial equity tranche of EUR 60 mln in a first close of the unlisted fund, Capital Preservation and Enhancement Central European (CAPE III). The addition of leverage will provide the fund with about EUR 150 mln to acquire a portfolio of pre-identified office and retail properties predominantly across Prague.

A second close of about EUR 100 mln of equity will provide an additional EUR 250 mln of spending power across the region to bring the fund to its target size of EUR 400 mln.

The fund's investment strategy is Core Plus/Value Add, with a focus on office and retail properties across Central Europe with a strategic allocation to Czech Republic, Poland, Austria, and select Slovak and Hungarian geographies.

The fund is targeting returns on equity of 7.50%+ per annum and an IRR (income plus capital growth) of 12-14% per annum.

'We believe the CE office and retail segment currently offers attractive risk adjusted return opportunities which combined with Whitewood's active asset management including re-leasing and cosmetic refurbishment, offers the potential for increasing capital value and improving our investor's cash-on-cash returns,' said Frédéric Van der Planken, joint managing partner at Whitewood Capital Group.

CAPE III is the third in a series of regionally focused, unlisted funds launched to capitalise on re-pricing opportunities emerging in the market place as a result of distressed vendors and the reduced availability of debt.

Whitewood Capital has some EUR 388 mln of assets under management. The company has offices in Antwerp, Amsterdam and Prague.