CBRE Global Investors (GI), the Los Angeles-based real estate investment manager, has announced a final close of its second pan-European shopping center fund after garnering €753 million in capital commitments.
The fundraising total for the vehicle, CBRE European Shopping Centre Fund II (ESCF II), includes €71.1 million of co-investment and exceeded the original equity target of €700 million. The firm added that the fund was oversubscribed, forcing it to return further equity.
CBRE GI said the fund is expected to deliver an 11 percent net internal rate of return and has a core-plus risk profile. The firm added that it will target assets that have a strong operational track record and offer income growth opportunities from short lease expiries or repositioning.
A number of assets in Germany, Poland, Italy and Spain have already been acquired on behalf of ESCF II. These include a €92 million shopping center in Poland and a €60 million shopping center in Hamburg, Germany. The fund’s predecessor, ESCF I, raised €220 million following its launch in 2010.
CBRE GI held a first close on ESCF II last year after corralling €200 million. It is understood the fund attracted largely European investors including pension funds and insurance companies, as well as several North American and Asian institutional investors.
“This capital raise has exceeded our expectations and shows that investors are keen to support managers that offer a focused and specialist investment strategy. I believe this has been enhanced by the strong performance of our first fund and we are delighted that 35 percent of the investors were existing ESCF clients,” said Florencio Beccar, head of EMEA retail and fund manager of ESCF II.
“One of our unique selling propositions is our proprietary database of €14 billion of retail assets under management in Europe, which includes 70 shopping centers. This platform provides us with a unique understanding of the retail landscape and gives us the edge for identifying the right assets, acquiring them and making them perform for our investors,” added Beccar.
As of September 30, CBRE GI had $87.6 billion of real estate assets under management.