MIPIM 2016: TH Real Estate has launched a €3bn (£2.3bn)-€5bn European cities fund.
The fund manager’s parent TIAA has provided €200m of co-investment for the vehicle, which will invest in income-producing properties in 42 “future proof” cities across Europe.
The fund will be structured as a Luxembourg special limited partnership and is aiming to get up to its target size within five years. Its maximum gearing will be 40% with a targeted average of 30%. The fund is in the process of assembling a seed portfolio of investments. It will be managed by Andrew Rich.
TH RE has assessed each of its target cities and has an individual strategy for each, focused on each sector it believes will perform best in each.
Rich said: “Following extensive research based on megatrend filters, we have identified a list of European Cities for investment, creating a unique product which will benefit our investor’s long-term goals.”
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