26 September 2017
Reporter: Theo Andrew

Gramercy closes €650 million industrial fund

Gramercy Europe has closed its third fund, focusing on pan-European logistics and industrial transactions, at €260 million.

Gramercy Property Europe III will be leveraged with a 60 percent loan-to-value ratio, giving it a total investment potential of €650 million.

The fund, which achieved the total in two months, will seek to acquire assets valued between €10 million to €200 million with a bias towards the German, French, Dutch and Spanish markets.

According to Gramercy, the fund will continue to fund build-to-suit developments, while undertaking sale-leaseback transactions and acquiring existing leased assets, as it plans to capitalise occupier demand for logistics and light industrial assets.

The capital raising follows the disposal of Gramercy’s €1 billion fund to AXA Investment Managers - Real Assets, in July.

Gramercy's Fund II initial rate of return is understood to be in excess of 35 percent.

Alistair Calvert, CEO of Gramercy Europe, said: “I believe that being able to close an all institutional equity fund in just two months is testament to both our clearly defined investment strategy and our successful track record of acquiring, managing and divesting industrial assets.”

He added: “Our mandate closely echoes that of our previous funds but with a widened appetite for shorter leases and more involved asset management needs. While the market gets ever more competitive, I am very encouraged by our pipeline of immediately executable transactions.”

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