MIPIM 2016: TH Real Estate launches 'cities' fund

The London-based real estate asset management firm will invest across 42 cities across Europe that have been deemed 'future-proof' based on the firm's proprietary research.

TH Real Estate, the London-based real estate asset management firm owned by TIAA, has launched a European core-open ended fund with €200 million co-investment capital provided by its parent company.

The firm is targeting an equity intake of €3 billion to €5 billion over a five year period. Its maximum gearing for the fund will be 40 percent with a targeted average of 30 percent loan to value.

The  fund, known as the European Cities Fund, is expected to be invested in income-producing properties in 42 'future-proof cities' across Europe, according to a statement from the firm.

“Following extensive research based on megatrend filters, we have identified a list of European Cities for investment, creating a unique product which will benefit our investor's long-term goals,” commented Andrew Rich, European Cities fund manager.

More than 200 European cities were assessed based on 'soft factors', such as quality of life; hard factors, such as urbanization and youth population; and growth factors, such as discretionary spending and population growth.
The research has also informed individual strategies for each city such that for some cities the firm will primarily target retail, for other cities it will also consider logistics and the remaining cities are suitable for retail, office and logistics investment. 

Much of the research can be found in Future Cities , a special report published earlier this month by PERE.