EXCLUSIVE: Rockspring nears first close for Trans VI

The London-based real estate investment management firm is expecting to reach a first close on €150 million to €200 million for its next European core-plus/value-added fund in June.

Rockspring Property Investment Management, the London-based real estate investment management firm, is poised to reach a €150 million to €200 million first close on its next European core-plus, value-added fund – TransEuropean VI – in June.

The firm is aiming to corral €400 million, with a €500 million hard cap, for the fund which is the largest target for Rockspring’s TransEuropean series since it was first launched in 1992. The fund will use up to 50 percent leverage so total fire power will be in the €800-€900m range.

Since the launch of TransEuropean I, the firm has invested €1.7 billion from the series in 14 European countries achieving an 11 percent IRR since inception.

Rockspring raised more than €350 million for predecessor fund, TransEuropean V, which is currently 95 percent committed and has delivered a 16.6 percent net IRR per annum. TransEuropean V collected its cash 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. “As an example we have been doing exciting things on the development side in Switzerland, and with retail boxes in Germany.”

“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.”

Rockspring has already got off to a fast start in 2015 selling a London office asset to AXA Real Estate for £70 million (€96 million; $104 million) and at the same time making a £47.5 million warehouse investment in Ipswich on behalf of a separate account.

For a more in-depth look into Rockspring’s latest fundraise and understanding of the firm’s three decade long history, be sure to check out PERE’s May issue.