German property giant Patrizia has raised a further €384 mln in equity commitments for its flagship discretionary value add fund, TransEuropean VII (TEP VII), which, combined with the €250 mln previously announced, brings the total raised to date to €634 mln.
Backed by investors from the UK, the Middle East, Europe, the US and Asia, the fund is the largest in the Patrizia TransEuropean series. Originally targeting a €500 mln equity raise with a hard cap of €750 mln, fund raising is expected to continue through the first quarter of 2020, until a planned final close in early April.
TEP VII will pursue a cash-flow driven, value-add strategy primarily across the office, industrial and residential sectors in continental Europe and the UK, adopting a more ‘operator’ style approach. With a target firepower of €1.5 mln, it has committed just over €550 mln to 11 separate transactions across key European cities including Madrid, Paris, Barcelona, London and Berlin.
Paul Hampton, fund director of the TransEuropean series at Patrizia said: 'Needless to say, we are extremely grateful to our investors for their ongoing support and confidence in us. This is an exciting time for TEP VII and as we move into the final phase of the equity raise, we are looking forward to progressing the assembly of the portfolio as our teams across Europe continue to unlock compelling opportunities.'
The TransEuropean series of funds was first launched in 1992 and has invested in 13 European countries since that time, generating a 12.6% pa IRR.