Frankfurt-listed Patrizia Immobilien has completed the €250 mln second close of its seventh TransEuropean fund (TEP VII).
The investment manager said that the equity had been secured from a diverse group of institutional clients in the UK, the US, Asia and Finland, with over 30% of commitments coming from clients who are new to the TransEuropean series.
A further €200 mln in equity is presently in due diligence with the fund targeting €500 mln, ultimately providing €1.2 bn of firepower with leverage.
'To have secured 50% of the TEP VII’s target equity at this point, while also welcoming two new clients to the programme, is extremely pleasing, particularly against the backdrop of a competitive marketplace where institutional investors have choice,' said Paul Hampton, Patrizia’s head of international fund management and director of the TransEuropean series.
'We now have good visibility on the shape of the Fund’s initial portfolio and clear appetite from additional investors, and are confident of achieving our final close within the planned timeframe,' Hampton added.
In line with its predecessors, Patrizia said TEP VII would pursue a cash-flow driven, value-add strategy primarily across the office, industrial and residential sectors in continental Europe and the UK.
Since the launch of TEP VII and its first close of €100 mln in April 2018, five investments across Madrid, Paris, Barcelona and Berlin, totalling an estimated €200 mln, have been either contracted or placed under exclusivity.
To date, the TransEuropean series - which was launched in 1992 - has invested €2.8 bn in 12 European countries, generating just under a 13% per annum gross.