Continues to focus on well let quality European logistics
Gramercy Europe, the European investment fund manager focused on pan-European logistics and industrial transactions, announces that it is closing on equity commitments of €260m for its third fund. All equity commitments are from institutional investors. The fund will be leveraged up to 60% LTV providing total potential firepower of €650m.
The capital raising has been achieved within just two months and builds quickly on the successful circa €1bln disposal of Gramercy’s last fund in its entirety to AXA Investment Managers – Real Assets, in July this year.
The Gramercy Europe management team has a proven track record of institutional quality portfolios of European commercial real estate assets at speed and scale, delivering returns through the capture of rental yields rather than relying on capital growth. Gramercy Property Europe III will continue to implement this successful strategy, sourcing investments through funding build to suit developments, undertaking sale-leaseback transactions and acquiring existing leased assets in the logistics and light industrial property sector.
The geographic focus of the fund will be on Continental Europe with a bias towards Germany, France, the Netherlands and Spain. It will focus on transactions from €10m to €200m, targeting a stabilised WALT in excess of 5 years across a portfolio of 30 to 40 high-quality industrial assets in defensible locations.
Alistair Calvert, CEO of Gramercy Europe, commented: “I believe that being able to close an all institutional equity fund in just two months is a testament to both our clearly defined investment strategy and our successful track record of acquiring, managing and divesting industrial assets. This new fund will be well placed to benefit from the structural drivers underpinning occupier demand for the logistics and light industrial assets. Our mandate closely echoes that of our previous funds but with a widened appetite for shorter leases and more involved asset management needs. While the market gets ever more competitive, I am very encouraged by our pipeline of immediately executable transactions.”
