Cordea Savills, the London based property fund manager, is launching Italian Opportunities II following on from the firm’s first Italian opportunities venture which was launched in July 2006.
The follow-up fund, which is targeting net annual returns of 20 percent a year, is to concentrate on the same strategy of acquiring single assets and portfolios through its Milan office.
The firm said in a statement that it is launching the follow-up in response to investor demand. Within three months from its launch, Italian Opportunities I acquired over €300 million of property assets and by April of this year it was fully invested, having acquired assets with a gross value in excess of €1 billion including participations.
Cordea said it is hoping to raise more than €300 million for the second fund. That compares with €200 million target the firm had for the first fund.
Another key difference is that this time around it is considering the public markets as a way to exit some investments.
Dominic White, director of investment, said: “We are also considering asset disposals via more innovative routes including listing sub-portfolios rather than simply selling buildings. This will add further value creation possibilities.”
The fund will have a five-year investment life and is structured as a Luxembourg FIS (Fonds d’Investissement Spécialisés) which will hold a Luxembourg SOPARFI for the purpose of its investments.
The minimum subscription amount will be €250,000 and maximum leverage is 75 percent loan to value.
Cordea Savills launches Italian Opportunities Number II
The European property fund manager is seeking to raise more than €300 million ($400 million) for Italian Opportunities II less than a year after launching its first Italian fund.