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Mitiska reaches €190m at second fund close

The Brussels, Belgium-based private equity investor has exceeded its original fundraising target of between €120m and €150m for its second vehicle, which is again is expected to be deployed into European retail park investments. 

Mitiska REIM has announced a second close of its second investment vehicle after garnering €190 million in capital commitments.

The firm’s First Retail International 2 (FRI 2) fund is a closed-ended vehicle intended to be deployed on European retail investments, both standalone units and specialist shopping parks. Mitiska REIM has set a target net internal rate of return of 10 percent per year from the investments.

The fundraising sees Mitiska surpass its original fundraising target which was between €120 million and €150 million. The firm added that, once leverage is included, the fund would have total investment capability of around €400 million. It is also understood the third and final rounds of fundraising will take place over the coming months.

More than €105 million of the money raised has already been invested in retail park developments and acquisitions in Romania, Poland and Czech Republic. Mitiska also said its real estate team was looking at further investments across Central, Eastern and Western Europe.

“Across Eastern Europe, retail parks are one of the most important and fastest growing parts of the retail real estate sector, with consumers attracted to the convenient locations and focus on everyday shopping needs. This in turn has meant we have been able to attract high quality tenants such as C&A, Deichmann, Jysk, Kik and Pepco,” said Axel Despriet, Mitisko’s chief executive officer.

“For our investors in FRI 2, this means we can offer a very attractive target return, through a clear strategy and focus on an investment opportunity which to date has missed the attention of most commercial real estate investors,” he added.

A spokesman for Mitisko said the firm’s investment model was partnership-driven, focusing on collaborations with local co-investment partners. He added that the firm saw itself as a value-add investor which looks to acquire income producing properties where value can be added through refurbishment, re-development, extension and active asset management.

Mitiska’s previous fund, FRI 1, was launched in 2013 and deployed into 29 retail park assets across Belgium, France, Romania, Poland, Czech Republic and Serbia.