Invesco Real Estate has held a first close on its Tactical UK fund with €75 million of commitments, it revealed toay.
The Dallas-based firm, which is owned by New York-listed asset manager Invesco, is raising capital from German-speaking investors, it said.
The vehicle, which has been domiciled in Luxembourg, completed its first closing on 24 August from four German institutional investors and has a maximum gearing of up to 60 percent.
Subsequent closings are expected to take place over the next 12 months, the firm added.
This is the third in the series of UK Tactical Funds that Invesco has raised. The first came in 1996 and the second in 1999.
As with the two predecessor funds, the new UK vehicle is targeting diverse commercial property sectors of office, retail and industrial and geographically across London and established locations within the UK regions. It has a three-year investment period with a planned lifespan of 10 years and is an income return based fund hoping to increase capital values via asset management.
Toby Simon, director of fund management at Invesco Real Estate, said in a statement that the time was right to “re-enter” the UK market. “While there has been a recovery in UK pricing during 2009 and 2010, values remain well below the long term trend levels and, in our view, continue to offer attractive opportunities as the rental cycle bottoms out,” he said.
Globally, Invesco Real Estate has €20 billion of assets under management, of which €3.7 billion is managed in Europe.