Mitiska REIM, the Brussels-based private equity investor has smashed its €150 million target for its second value-add real estate vehicle after raising €223 million.
The firm announced a first close for the closed-end fund, First Retail International (FRI) 2, in October after garnering €190 million in capital commitments. The vehicle’s initial target range was between €120 million and €150 million, with an original hard cap of €200 million. A spokesman for Mitiska said that, allowing for gearing, the fund’s total investment capability was around €500 million.
Following on from its previous vehicle, FRI 1, the latest fund is also focused on European retail parks. The firm has already deployed more than €60 million of equity for acquisitions and development projects in Spain, Romania, Poland and the Czech Republic, and is building a pipeline of additional investment opportunities in the French, Spanish, German and Austrian markets.
Mitiska said around 40 percent of commitments came from reinvestments and increased commitments from investors in FRI 1, with the remaining 40 percent coming from new overseas investors from the UK, France and Switzerland.
“Retail parks are fast becoming the first choice amongst retailers due to the highly visible locations and low occupancy costs, and amongst investors looking for diversified, attractive returns in the retail real estate sector,” said Luc Geuten, executive chairman of Mitiska.
“The significant investor interest in FRI 2 is a recognition of our clear strategy, expertise and focus on retail parks, which we believe are one of the most exciting and attractive real estate opportunities in Europe,” added Geuten.
FRI 1, also a value-add fund, was launched in 2013 and collected €75 million in commitments, including a €10 million co-investment from Mitiska. Since then the firm has built a portfolio of 19 retail parks across Belgium, France, Romania, Poland, Czech Republic and Serbia using capital from the fund.
Mitiska has not disclosed whether it co-invested in its latest fund.