The fund, which is managed by
“European investors are now demanding investment quality as well broad pan-European property exposure – not just domestic property as was the case historically,” said Jacobs. “Institutional investors are seeking to capitalise on opportunities in the European real estate market, and recognize our 20-year experience selecting property funds in these markets”.
Over 40% of the fund has already been invested in five deals. “Our investors recognize that ‘European’ property means a series of culturally diverse property submarkets and that the fund of funds structure allows for efficient property exposure without the complications of direct property investment,” said Weidner. “The European Real Estate Fund of Funds delivers on both benefits by offering access to multiple properties and managers.”
The closing of the Franklin Templeton European Real Estate Fund of Funds is part of a growing trend of private equity managers targeting the sector. In December last year Warburg Pincus raised almost €930m for Warburg Pincus Real Estate Fund I, and in September the former head of Doughty Hanson’s European real estate Marc Mogull raised €335m for Benson Elliot Real Estate Partners II. Doughty itself raised €560m last summer for Doughty Hanson & Co European Real Estate II.