TH RE raises €500m for European cities fund

TH Real Estate has raised €500m in the first close of its European Cities Fund.

The open-ended fund will target core assets across the Continent with an initial firepower of about €700m – an LTV of 28%.

Over the next five years, it expects to raise €3-€5bn with an LTV averaging 30%.

The fund secured its first asset in May when it bought Meraville Retail Park in Bologna, Italy, with a €46.7m loan provided by ING.

Upcoming deals will focus on 42 “future-proof” cities with the potential for long-term growth in real estate.

Andrew Rich, fund manager of the European Cities Fund, said: “The founding principles of our strategy are to look through market cycles and focus on those cities where people will want to live and work in the future.

“As a new fund with capital to deploy and only one existing asset, the fund is well placed to take advantage of any movement in market pricing.”

European Cities Fund was launched in March 2016 with a €200m co-investment from TH RE parent company TIAA.


Other News

Tech City guide: Lisbon

It’s not San Francisco, but it has a bridge and a tech buzz to match. Historic, quaint and ramshackle, Lisbon is everything its stateside counterpart… Read more »

G Global

How to achieve the best returns in London

Brexit was widely perceived as a vote against London’s dominance and, in the immediate-term, was expected to have a deleterious effect on the market as… Read more »

G Global

Top tips for the capital’s overseas investors

Overseas investors are accounting for an increasing number of UK property transactions and, with the devaluation in sterling, the UK property market is set to… Read more »

G Global