Rockspring Property Investment Managers (Rockspring) is pleased to announce the final closing of TransEuropean Property Limited Partnership V. Rockspring has secured equity commitments of over 350 million, beating its target, and achieving the largest equity raise to date for Rockspring TransEuropean funds.
With an ability to invest approximately 700 million gross over its eight year life, Rockspring believes that the Fund will be well positioned to exploit continuing distress, value weaknesses and market dislocation across its target markets. TransEuropean V will identify core/core+ and value-add real estate assets where Rockspring sees a clear market-led drop in valuation and which offer the potential to enhance capital and income value through asset management initiatives.
The Fund's key target areas will be the mainstream sectors (retail, office and industrial) in 'core' Western Europe (namely Germany, the UK, France, Nordics and Switzerland) and Poland.
To date, the Fund has secured two initial purchases totaling 119 million:
- Portfolio of six retail assets in Sweden (82 million)
- Löwen Center (retail), Leipzig, Germany (37 million)
Two further transactions are in exclusivity and a strong pipeline of further investment opportunities are currently being evaluated.
The Fund is the fifth in Rockspring's TransEuropean series, which was first launched 20 years ago. Commitments have been received from a high quality and diverse investor base comprising five new and seven existing institutional investors from Europe, the Middle East, Asia and North America.
Robert Gilchrist, Chief Executive of Rockspring, commented: "The successful launch of our fifth TransEuropean fund in the midst of such challenging times for capital raising is a significant achievement and we are delighted by the enthusiasm and support our investors have shown towards our strategy for the Fund at this stage in the investment cycle.
"The market and economic dislocation across Europe has created some exciting opportunities for investors who understand that current pricing levels can create some very real openings to create value.
"There is no doubt that 'equity will be king' in the year ahead, but good returns will only be secured by experienced investors who have detailed understanding of the nuances of the local markets and have a track record of de-risking their carefully selected investments through the application of skilled fund and asset management. We greatly look forward to working on behalf of our investors to take advantage of the potential we are seeing in our target markets."
Source: FTI Consulting