EXCLUSIVE: Rockspring holds €217.5m first close

The London-based real estate investment management firm collected the cash for its latest European core-plus/value-added fund from five investors.

Rockspring Property Investment Management, the London-based real estate investment management firm, has reached a €217.5 million first close on its next European core-plus/value-added fund – TransEuropean VI.

The firm secured the capital from five investors across the UK, France, Finland and the US.

Rockspring is aiming to corral €400 million for the fund, which is the largest target for Rockspring’s TransEuropean series since it was first launched in 1992. The fund, which has a €500 million hard cap, will use up to 55 percent leverage so total fire power will be close to €1 billion.

“With over €200 million of transactions either already closed on or in due diligence, we are keen to conclude our fundraise so that we can focus on assembling the remainder of the portfolio,” said Paul Hampton, Rockspring partner and fund director of the TransEuropean series.

Since the launch of TransEuropean I, the firm has invested €1.7 billion from the series in 14 European countries, achieving an 13.1 percent internal rate of return since inception.

Rockspring raised more than €350 million for predecessor fund, TransEuropean V, which has delivered a 21.5 percent net IRR per annum. TransEuropean V collected its equity from 12 investors from 10 countries across four continents.

“TransEuropean VI will be continuing certain themes that we have invested TransEuropean V in and where we still see significant value that can be generated by our in-house asset management teams,” Rockspring chief executive, Robert Gilchrist, told PERE back in May just after the firm kicked off fundraising.

“We clearly see that the easy money has been made. The inevitable rebound from the cyclical lows of the financial crisis has now happened. This basically means that investors have got to be clever about what they are looking for and why they are investing.”