Savills IM launches European food retail fund

Savills Investment Management has launched a new fund focused on the European food retail sector, securing initial commitments of €109 million ($132 million) from six German institutional investors.

The core and core-plus fund, known as Savills IM European Food Retail Fund, is targeting €750 million ($912 million) and seeks to acquire supermarket portfolios with lot sizes usually starting at €50 million ($60 million). The fund also may acquire neighborhood centers, mixed-use urban properties and specialist retail centers that have a food retailer as an anchor tenant and at least 70 percent of the rental income comes from food/grocery and basic services tenants. At least 85 percent of the rental income at the portfolio level will come from supermarket/food tenants.

Savills IM European Food Retail Fund has made its first investment already — a Danish supermarket portfolio of 38 urban properties with a total volume of €140 million ($170 million). The assets are