Gramercy Europe Limited launches next European-focused real estate fund

Gramercy Europe Limited, a real estate investment fund manager, has launched a fourth real estate vehicle, targeting a final close in first quarter 2019, with a fundraise target of approximately €400 million ($463 million), primarily from pension funds. Gearing of up to 60 percent will provide potential firepower of €1 billion ($1.15 billion).

The strategy of the new vehicle will be similar to that of its predecessor, Gramercy Property Europe III (GPE III), which closed in September 2017, with €260 million ($301 million) of equity commitments. The new fund will focus on sourcing investments through funding speculative and build-to-suit developments, undertaking sale-leaseback transactions and acquiring existing leased assets in the logistics and light industrial property sector, typically between €10 million ($11.5 million) and €150 million ($174 million).

Since January, GPE III has closed on €350 million ($405 million) of primarily modern, single-tenant ne