MGPA holds first close of $100m for Europe fund

The European and Asian firm is targeting €600 million for its MGPA Europe Fund IV. Investors so far have been limited partners in its previous fund, MGPA Europe III, which closed on €842 million in 2008.

MGPA has held a first close of $100 million on MGPA Europe Fund IV (EF IV), with repeat commitments from certain investors in its predecessor fund, MGPA Europe Fund III.

The firm announced today that, in a departure from Europe Fund III, Fund IV would concentrate on four markets, the UK, France, Germany and Poland, in order to take advantage of current market dislocations and recapitalisations.

“EF IV aims to access real estate at attractive prices and manufacture core products in high demand from tenants and institutions due to the lack of modern stock,” it said.

EF IV has a target of €600 million. If achieved, that would make it 28 percent smaller than MGPA Europe Fund III, which closed on €842 million in 2008. The latest vehicle, though, is closer to being a value-added proposition than an opportunistic one.

Laurent Luccioni, MGPA Europe chief executive officer, said the company would continue to focus on value investing combined with its “local asset management approach and long standing presence in the main European markets”.