AEW Europe, Curzon close Central European fund oversubscribed on €370m

The Paris-based institutional property manager and its London affiliate Curzon Global Partners have held the third closing for PBW II but will have a final close in September to allow another €30 million of subscriptions.

AEW Europe and its boutique affiliate fund manager Curzon Global Partners has raised €370 million ($504 million) for central European fund PBW II, which is named after the three key cities of Prague, Budapest and Warsaw.

In a statment today, the pair said PBW II was oversubscribed and that a final close will take place in September to allow €30 million of further commitments by investors.

The core-plus property vehicle made its maiden investment in February, acquiring Polish shopping center, Galeria Pestka for €85 million. The 40,000 square center is located in Poznan, Poland’s fifth largest city with a population of nearly 600,000.

Artur Mokrzycki, managing director for central Europe, is managing PBW II. He said the fund is in active discussions for further acquisitions in Hungary, the Czech Republic and Romania. Poland, however, appears to be the most active market for foreign investors.

French retail giant Casino Guichard-Perrachon revealed early this month it is working with Goldman Sachs’ private equity real estate fund Whitehall to build shopping centers in Poland—with the possibility to expand into Eastern Europe.

In May, Morgan Stanley Real Estate entered the market by acquiring a 25 percent stake in WAN SA, a Warsaw-based developer of residential, office and logistic properties.