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Rockspring closes £342m UK fund

The pan-European real estate manager said the eight month fundraising to close its latest UK core-plus offering was the quickest in its 30-year history.

Rockspring Property Investment Managers, the London-based real estate manager, has reached a final close on its UK core-plus offering, UK Value 2 LP, on £342 million (€453 million; $515 million).

The £342 million was collected from 11 investors, comprising institutions from five countries: Australia, Finland, Germany, the UK and Denmark. It took Rockspring only eight months to reach the final close, a record for the institution.

“This has been a very successful process in many ways for Rockspring,” said Richard Bains, Rockspring partner and fund manager of the UK Value series, said in a statement. “Not only did we achieve final close within a record timeframe, we also received commitments from a significant mix of both new and repeat investors – a strong endorsement of what we have accomplished with UK Value 1.”

UK Value 2 will have a duration of seven years and a target IRR of 12.5 percent per annum. It will be 50 percent geared to provide a total firepower of around £650 million.

Already Rockspring has been putting capital from UK Value 2 to work making seven acquisitions and taking the current total aggregate value of the assets to more than £200 million. Most recently Rockspring acquired office building Peter House in Manchester for £23.7 million and Cambridge Research Park for £21 million.

Last August, the fund invested in Bramley shopping center in Leeds and Guildhall, an office and retail investment in Glasgow. Those two acquisitions, for a total of £47.5 million, came in the wake of buying the Maskew Retail Park in Peterborough for £37 million.

“Our ability to access quality assets – on a predominantly off market basis – has ensured the swift investment of nearly a third of the fund’s capital to date and I am confident that, with the pipeline we already have in place, we will be able to meet our target of securing [circa] £650 million of assets by the summer of 2016,” added Bains.