Aerium, the European real estate fund management group, has launched a €60 million French retail fund, Vendome I Fund, to invest in prime real estate.
The company said it was aiming to raise €50-60 million and that with leverage it should be able to make €100-€120 million of investments.
CB Richard Ellis will act as placement agent for the vehicle that aims for an internal rate of return of 9-11 percent after fees targeting retail properties in and around Paris and on high-street and edge-of-town units in the main regional centres.
Vendome I is the first of a series of “small niche funds” under the Special Opportunities banner Aerium has launched to capitalise on immediate opportunities. Further funds to be launched will include a UK trophy asset fund and a German retail fund which will take some refurbishment and leasing risk.
Of the French fund, Daniel Bendavid, chief investment officer of Aerium France, stated: “We are seeing continued appetite from investors to acquire French retail real estate. We believe this is the right time to invest in this asset class.”
Over the past eight years, Aerium has raised more than €2.7 billion of equity. It has offices in the UK, Luxembourg, Switzerland and France.