Fifth successful equity raise for ASR Dutch Prime Retail Fund
Retail Fund Goes Global With €250m From Asia
a.s.r. real estate investment management, “a.s.r. reim”, has completed its fifth close for the ASR Dutch Prime Retail Fund (“the Fund”). An Asian institution has invested €250 million in the Dutch retail fund, bringing the total external equity raised since inception to over €785 million.
Dick Gort, CEO at a.s.r. reim, said: “Having raised over €500 million in less than two years’ time from multiple European investors, we have now successfully implemented our strategy to further internationalise our investor base by attracting €250 million of equity from an Asian institution. We targeted this market as we recognised that the quality and diversification of the retail portfolio and the relatively strong income return would be an optimum fit to the investment criteria of our new client.”
Mark Evans, Head of Equity Placement, CBRE Capital Advisors, added: "2014 was an extremely competitive environment for core/core plus fund raising. Therefore it was paramount that we were able to articulate to potential investors the attractive returns of the ASR Dutch Prime Retail Fund and the modern fund structure. We were also able to demonstrate the low volatility of income return generated by this diversified portfolio with index-linked rents. Furthermore, the Fund’s ongoing pipeline of acquisitions and asset management opportunities were key to this investor.”
a.s.r. reim was advised by placement agent CBRE Capital Advisors. De Brauw Blackstone Westbroek provided legal advice and PWC acted as tax adviser to the Fund.
About the Fund
Subscribers to the Fund now comprise of 9 leading global institutional investors. The original owner of the seed portfolio, a.s.r., remains committed to the Fund as a long-term cornerstone investor.
Fund’s portfolio valued at circa €1.3 billion
The Fund comprises a diverse retail portfolio valued at circa €1.3 billion, providing investors with immediate exposure to circa 200 prime Dutch retail real estate assets let to over 630 retailers. The portfolio consists of solitaire/single high street units, shopping centres and supermarkets and also has a pipeline of attractive secured investment opportunities valued at approximately €0.1 billion.
The Fund’s structure
The Fund is a contractual mutual fund, governed by Dutch law, with an indefinite life and with a low level of gearing. It has also been set up in line with INREV Guidelines to ensure best practice reporting and ongoing transparency for investors.