Rockspring closes value-added UK fund on £336m

The London-based European private equity real estate firm says it is focusing on small-to-medium sized properties in order to deliver net returns of 13% per year.

Rockspring Property Investment Managers, the London-based pan-Europe firm, has closed its UK Value Fund on £336 million ($502 million; €408 million) of commitments.

The firm said that with bank loans, it could amass up to £700 million of assets.

The fundraising saw 12 international institutional investors commit to the vehicle, with those investors coming from four countries.

Its strategy is to focus on small-to-medium sized assets primarily in the office, retail and industrial sectors. The target is to deliver a net total return to investors of 13 per cent every year.

So far it has called down £82 million of the equity for four acquisitions, Rockspring added.

News of Rockspring’s intention to raise a UK value added fund surfaced in summer 2009, when Bloomberg reported the firm was aiming to coral £350 million. However, that report said Rockspring started raising money for the value fund in the first half of 2008 and abandoned the effort following the credit crisis.