Real estate fund manager
have teamed up and launched a €1.8bn pan-European property fund.
Cannily named the Ærium Fairfield Special Opportunities Fund, a total of €500m in equity is to be raised which will give it €1.8bn to invest with gearing. The vehicle will focus on opportunistic real estate investments comprising developments and investments in the office, retail, residential, hotel, and logistics sectors as well as land for development.
As well as direct equity investments, the fund will also look to provide mezzanine debt as well as investing in deals which involve public real estate enterprises, although it will not run a portfolio of public securities.
The European markets will be the focus of fund, which, the firm said in a statement, “look set to provide opportunities for greater capital appreciation than has recently been available” in the light of the credit crunch and its repercussions in the real estate market.
Geographically, the target regions will be Western Europe, and Central and Eastern Europe, with attention also being drawn to Turkey. Ærium currently has around €7.7bn under management across Europe and is one of the largest investors in Turkish retail assets.
This is Ærium’s tenth real estate investment vehicle, which have a total of €3.1bn of assets under management. Two funds are fully realized, and have delivered IRR’s of between 28% and 35%. The current fund is looking to achieve an IRR of 15% to 25%.