Global real estate manager Cromwell Property Group has launched a €2 billion European property fund after securing commitments to fund the €205 million seed portfolio.
The Cromwell European Cities Income Fund (CECIF) is a long term, open-ended core fund investing in office, retail, leisure and industrial real estate, which Cromwell chief executive Paul Weightman said was part of a move to grow the firm’s funds management business.
“The first close of CECIF, and the acquisition of the seed portfolio, demonstrates our ability to match international capital with investment opportunities underwritten by our on-the-ground real estate teams in 22 offices across 14 different European countries,” Mr Weightman said.
“We have a very strong pipeline of additional investment opportunities already identified for CECIF and look forward to announcing further milestones.”
Cromwell’s chief executive for Europe David Kirkby said European real estate covers over 500 million people, often with “little correlation between different markets”.
“Additionally, the historically high-yield premium of European commercial property over sovereign debt and corporate bonds currently offers an attractive entry point for institutional investors looking for a long-term total return of 8 per cent or above,” he said.
CECIF’s seed portfolio consists of “three prime office assets” located in Amsterdam, Rotterdam and The Hague, each let on long-term leases.