AEW announces it has now raised more than €415m of equity from several international institutional investors, for the Europe City Retail Fund exceeding the Fund’s initial target of €400m. The additional equity raised provides the Fund with a total investment capacity in excess of €800m. Having received significant levels of demand for the Fund, AEW is in discussions with a number of investors and expects to further increase the level of equity commitments up to €800m over the next few years.
The Fund has already invested €200m across Europe, having raised €125m of equity at its first close in November 2015. The Fund’s portfolio includes prime high street assets on Via del Corso, Rome and on the Østergade in Copenhagen.
The Fund’s strategy is to build a portfolio of high quality, income producing retail assets that are well located within the main European city centres, and has a maximum loan-to-value ratio of 50%.
Marc Langenbach, Head of Funds for AEW in Germany commented: “To have exceeded our initial fundraising target is a clear sign of the ongoing demand for good quality income-producing retail assets throughout Europe, and a strong endorsement of our investment strategy to date. We shall now look to continue sourcing the most attractive investment opportunities in Europe’s tier one cities on behalf of our investors.”
Christina Ofschonka, Fund Manager for City Retail Fund for AEW in Germany commented: "Since the launch of City Retail Fund in November 2015, we have been focused on investing in assets in prime locations which we believe have the potential for income growth over the short to medium term. We have already invested around €200m in a range of assets across Europe including in Copenhagen, Rome and Madrid and have a further €400m of investments under exclusivity in France, Italy and Germany, which will allow us to both grow and further diversify the Fund’s portfolio.”
