Cordea Savills Holds First Close for Retail Fund
Cordea Savills has held a first closing of its European Retail Fund with €70 million in equity from four German institutional investors. The fund, which has a target size of €500 million with gearing of 50 percent, is aimed at German investors. The fund will focus on shopping centres, retail parks and High Street retail units, initially in Germany, the United Kingdom, France and the Nordic countries.
“We anticipate retail will outperform as a sector over the next five years in the majority of western European economies. German investors, especially, are traditionally underweight in retail property but surveys indicate their allocations are rising so this fund will meet their appetite for this sector,” says Thomas Guetle, fund director at Cordea Savills.
The fund will have a 10-year term and targets an internal rate of return of 7 percent per year, with an average distribution of 5 percen