Valad Europe is to invest 鈧�250m in France via its European Diversified Fund.
The fund, which has a core-plus, value-add strategy, has so far invested in Germany and the UK. Valad said it had secured a further 鈧�190m from investors following 鈧�180m of commitments to the fund late last year.
Leveraged at between 50-65%, the latest commitments to the fund take its investment capacity to 鈧�1bn.
Chief investment officer David Kirkby said the decision to invest in France 鈥� not part of the fund鈥檚 initial strategy 鈥� was taken as a 鈥渃ounter cyclical play鈥�.
Kirkby told IP Real Estate: 鈥淲e said we鈥檇 start with UK and Germany and France was on our watchlist.鈥�
Backed by US, Middle-Eastern and European investors, the fund, he added, would concentrate on France鈥檚 main cities, outside of Paris, where there has been less yield compression.
鈥淲e鈥檝e got flexibility from our investors,鈥� Kirkby added. 鈥淵ields have not compressed outside the Paris region of Ile de France, somewhere we are less likely to be investing.
鈥淭here鈥檚 depth of market 鈥� the pipeline鈥檚 there.鈥�
The fund, which has so far invested 鈧�234m in 14 assets in the UK and Germany, has a further 鈧�229m under offer.
鈥淲e鈥檙e going to stay with those three countries for the time being,鈥� Kirkby said.
The fund is typically focused on office, retail and industrial distribution warehouse/smaller logistics sectors in the 鈧�5-50m range. Kirkby said the fund is comfortable with some leasing and repositioning risk.
鈥淲e have good flexibility across sectors,鈥� he added. 鈥淲e鈥檙e a cross between core-plus and value-add.鈥�
In the UK, Kirkby said the fund was looking to invest in small to medium-size assets with similar tenants and use, which could in the future return a premium if sold as a portfolio.
