Global Investment Partners (GIP), CBREβs multi-manager, has raised $840m (β¬770m) from six UK, European and US pension funds for a new value-add fund.
The vehicle β the fund-of-fund platformβs first in Europe β is targeting assets in the logistics and retail sectors, both undergoing significant change as a result of e-commerce.
CBRE GIP chief executive Jeremy Plummer told ΒιΆΉΣ³» Real Estate that the UK, France and Spain are the fundβs main focus.
βThere are clear structural consequences of e-commerce,β Plummer said. βWeβll be looking for investments where e-commerce has been positive for logistics and is still positive for retail.β
The closed-end, seven-year fund could also consider assets in the Nordics and Germany, Plummer said.
The fund, targeting co-investments and joint ventures, is expected to deliver a 15% net IRR.
CBRE GIP bought a portfolio of logistics assets in France for β¬240m.
The platform bought the 440,000sqm Nautilus portfolio in a joint venture with Arax Properties, which will manage the properties.
Plummer said the assets were bought at βbelow replacement costβ and would provide the fund with βattractive, cash-on-cash incomeβ.
In the UK, the fund is investing with joint venture partners Roxhill in what Plummer described as a βrare opportunityβ within Londonβs M25 circular motorway.
The 2m sqft Howbury Park site, near Dartford to the south east of the UK capital, has planning consent.
βItβs a unique opportunity,β Plummer said, pointing to the siteβs rail and road links.
In the retail sector, the fund is targeting βinternet-defensiveβ assets, he added.
The fund has also bought high street assets in central Madrid.
βYou need to be selective when investing in retail,β Plummer said.
βThereβs been a narrowing as retailers reduce their footprints for everything other than food.β
