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.

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.