Internos Global Investors has held a €135 million first close on its European core vehicle, Internos Core European (ICE) Balanced Fund.
The London-based fund manager garnered the capital from six institutional clients of Townsend Group, which include insurance companies and public and private sector pension funds based in Europe and Asia.
The firm is targeting gross asset value of €2 billion over five years and total returns of 8 percent using modest leverage to acquire commercial real estate across the major metropolitan markets in Europe and the UK. The firm will invest the capital predominantly in office, retail, logistics and industrial assets with up to 20 percent allocated to more specialist property asset classes.
Internos has already made its first acquisition for the fund, a €200 million investment in a portfolio comprising nine properties including seven office assets, one logistics asset and one mixed use asset.
“We are leveraging our experience across markets and sectors to build a high quality portfolio of core assets capable of delivering attractive returns to long-term liability matching institutional investors,” Giles Smith, head of fund management at Internos, commented.
“With our first acquisition complete, the team is now working on a pipeline of single asset and portfolio acquisitions, sourced according to the fundamentals of the assets, micro-locations and local occupier markets.”
Established in 2008 by real estate industry veterans Thornton and Jos Short, Internos has offices in London, Frankfurt, Amsterdam, Paris, Lisbon, Milan, Luxembourg, and Madrid and employs around 100 staff. The firm currently manages more than 600 properties spread across eight countries valued at around €3.5 billion.