TH Real Estate, TPG Real Estate and Partners Group have teamed up to target retail property assets in Southern Europe.
The Southern European Value-Add Mandate (SEVA) vehicle was seeded with three assets in Spain and Italy valued at more than €250m.
The vehicle will target value-add and opportunistic assets across the two countries, as well as in Portugal.
Fabian Neuenschwander, senior vice-president and co-head of real estate secondaries, said: “The three retail assets already acquired by our joint venture are an ideal fit with Partners Group’s strategy of seeking value-add investment opportunities.”
TH Real Estate, which has €2.3bn in retail assets in Italy, Spain and Portugal, said the strategy would be complementary to its core-focused Global Cities Series.
Marta Cladera de Codina, TH Real Estate’s head of Iberia, said the venture sought additional assets that could benefit from refurbishments, reconfigurations and rebranding to deliver increased value.
Jay Kwan, managing director at TPG Real Estate, said: “As Southern European economies continue to grow and recover, we see a compelling opportunity for investment, specifically in the retail sector.”
The firm recently launched a US office joint venture, the Strategic Office Partners platform, which will build a portfolio of single-tenant office assets in high-growth US metropolitan areas.
TPG and Gramercy committed $400m and secured a $200m non-recourse credit facility from Morgan Stanley for the venture.