L’Etoile Properties launches new “broken core” office fund, secures €115m in first close

L'Etoile Properties, a pan-European real estate investment manager and part of Sienna Investment Managers, has launched a new investment vehicle in Europe, the EP Sienna IM European Broken Core Office Fund.

The open-ended German special fund is focused on office properties in established office locations in Germany, France, Spain and the Netherlands.

“Broken Core,” a term coined by L’Etoile, is a subcategory of coreplus, but has a significantly lower risk profile compared to manage-to-core. The broken-core strategy involves investments in buildings with core characteristics but that have minor shortcomings, such as low vacancy rates, short-weighted-average lease terms or manageable technical problems. The properties are located in the best business situations or established submarkets with strong tenant demand and liquid investment markets.

The quality of the buildings will be increased through targeted investments. They could include modernization, extens