AEW Europe garners €415m for retail fund – Exclusive

The Paris-based private equity real estate investment manager has passed it original €400m target and will seek to raise a further €400m over the next few years.

AEW Europe, the Paris-based private equity real estate investment manager, has raised an additional €290 million for its Europe City Retail Fund. The fundraise means the firm has now collected more than €415 million in total, surpassing its original investment target of €400 million.

AEW Europe said the capital was raised from a selection of international institutional investors and provides the fund with a total investment capacity of more than €800 million.

Furthermore, the firm said, having received significant levels of demand for the fund, it was already in discussions with a number of investors and expected to increase the equity commitments up to €800 million over the next few years.

AEW Europe held a first close for the vehicle in November 2015, when it has garnered around €125 million of equity. The fund’s portfolio includes several prime high street assets in Via Del Corse, in Rome, and Ostergade, in Copenhagen.

“Since the launch of the fund in November 2015, we have been focused on assets in prime locations which we believe have the potential for income growth over the short to medium term,” said Christina Ofschonka, fund manager for the City Retail Fund.

“We have already invested €200 million in a range of assets including in Copenhagen, Rome and Madrid and have a further €400 million of investments under exclusivity in France, Italy and Germany, which will allow us to both grow and further diversify the fund’s portfolio,” she added.

“To have exceeded our initial fundraising target is a clear sign of the ongoing demand for good quality, income-producing assets throughout Europe, and a strong endorsement of our investment strategy to date,” said Marc Langenbach, head of funds at AEW Europe in Germany.

AEW managed €19.3 billion of real estate assets in Europe, as at 30 September 2016, on behalf of a number of funds and separate accounts. The firm has over 300 employees based in 10 offices across Europe and invests in core, value-add and opportunistic strategies.