Amstar closes Turkish retail fund

The Denver-based firm has closed on €95 million for its Amstar Global Property Fund II through which it is targeting three development sites for shopping centres in Turkey.

Amstar has closed its second value-added retail property fund, an investment vehicle raised specifically for three shopping centre developments in Turkey, PERE has learned. 

Although representatives from Amstar declined to comment, sources have confirmed that the commingled Amstar Global Property Fund II has closed on a total of €95 million in equity commitments. The fund’s target assets each are in secondary cities.

Launched in May 2011, the fund was initially capitalised by five LPs from the firm’s first fund, which committed €30 million, before other investors added capital.

Though the firm has a value-added strategy for the fund it expects to generate net returns of more than 25 percent from its investments.

While Turkey is Amstar’s current focus, the Denver-based firm previously had a wider investment strategy attracting $335 million of equity in 2008 for its first fund which it invested in developments in Russia and India as well. One source said that the firm decided to narrow its focus on Turkey for its follow-up fund because of the country’s strong demographics and GDP growth, stronger performance in the Turkish deals of its first fund relative to its investments in other countries and its strong relationship with Ankara, Turkey-based developer Renaissance Development. 

The firm focussed its fundraising efforts for the second fund on European institutional investors and brought in roughly a dozen LPs to the vehicle. Their commitments were €5 million or more.