Patrizia's Rockspring Property Investment Managers has announced the launch of the seventh fund in its TransEuropean series (TEP VII) with a €100 mln first close.
The initial equity has been secured from two investors from the UK and US who have supported the fund series over its 26-year life. The firm is targeting a €500 mln raise, with a number of other investors currently in the due diligence phase.
Like its forerunners, 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. Gearing has been set at 60%, suggesting potential firepower of up to €1.2 bn.
'To be announcing our first closing at this point is clearly fantastic news,' said Paul Hampton, Rockspring partner and fund director of the TransEuropean series. '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.'
Rockspring first launched TransEuropean I in 1992 and has since invested just under €3 bn in 13 European countries, generating a 12% per annum gross IRR since inception. The funds are managed by a team who have worked together through multiple cycles over the past 15 years, led by Robert Gilchrist, the firm’s CEO.