Tristan Capital Partners, the London-based private equity real estate firm, has hit the €1.5 billion hard cap for its European Property Investors Special Opportunities 4 (EPISO 4), its European value-added and opportunistic fund, in only four months.
The firm smashed its €950 million target for EPISO IV leaving it 30 percent oversubscribed and said it even turned away more than €500 million of unfulfilled demand.
“Our recent fund offering also benefited from the strong appetite for European property assets where there is still considerable value to be extracted as the EU’s economic recovery gains momentum,” commented Ric Lewis, chief executive of Tristan.
The firm is targeting a 15 percent ‘triple net’ annual return to investors for EPISO IV and will invest in Western and Central European markets across the office, logistics, retail and residential sectors.
Some 50 percent of the capital came from investors in the US, 25 percent was from Europe and 25 from Asia-Pacific. The fund has a total of 34 investors.
This compares with 36 investors participating in Tristan’s last equity raise for the EPISO III Fund, where the proportions were 40 percent US, 40 percent Europe and the Middle East, and 20 percent Asia. EPISO III collected €950 million back in January 2014 and has fully committed the fund across 30 investments.
It has notably bought in Germany where the firm made acquisitions including one of the largest retail properties in central Munich, a portfolio of mixed-use properties located mainly in Berlin and Frankfurt and a logistics park in Bielefeld, North Rhine-Westphalia.
Tristan later acquired a 14-property portfolio of mixed-use buildings located mostly in Berlin from funds managed by Frankfurt-based real estate firm DG ANLAGE Gesellschaft for €117.5 million.