Rockspring raises first capital post-Patrizia acquisition – Exclusive

The firm is one-fifth of the way to its final close for its latest value-added European fund.

Rockspring Property Investment Managers has corralled €100 million in a first close for its latest pan-European fund.

The close is the first for the London-based firm since it was acquired by Patrizia Immobilien in a deal that closed last month.

Rockspring launched TransEuropean Property VII six months ago with a €500 million target. The firm received two capital commitments from unnamed existing investors, one from the UK and the other from the US.

Leverage is set to 60 percent, and the firm plans to invest in office, industrial and residential sectors across continental Europe and the UK.

Investors in the predecessor vehicle, which closed in July 2016 on €430 million, included the Finnish Local Government Pensions Institution and the School Employees’ Retirement System of Ohio, according to PERE data. TEP VI is fully invested, the firm said.

Rockspring’s TEP series, which launched in 1992, has generated an overall 12 percent gross internal rate of return since inception.

“With an even deeper pool of local resources at our disposal following the tie-up with Patrizia, we are excited about the prospects for TEP VII as we look forward,” Paul Hampton, the fund series director, said in a statement.

Patrizia agreed to purchase Rockspring in December, which gave Patrizia access to the firm’s roster of institutional relationships from around the world. When PERE interviewed Patrizia’s founder Wolfgang Egger in May, more than 90 percent of the firm’s investors were from Germany. Rockspring’s coverage, meanwhile, is more spread out: 37 percent are from continental Europe; 31 percent from the UK; 27 percent from Asia; and 5 percent from North America, PERE reported in December.

The deal saw Patrizia inherit €7.8 billion of Rockspring’s assets under management and 114 staff across 12 offices in Europe. Post-acquisition, Patrizia Group manages about €40 billion of real estate assets.