US fund manager Franklin Templeton has raised €59.5m of equity for the Franklin Templeton European Real Estate Fund of Funds – the multi-manager specialist’s first European property vehicle.
Investors in the 10-year, ungeared fund, which is structured as a Luxembourg FCP, include UK local authorities and Nordic pension funds, as well as €10m from the fund manager.
The fund has a €300m equity target and will continue raising money until next October.
The vehicle is targeting value-added funds and expects returns of 12-14% a year for investors. The fund will be managed from New York by John Foster, Franklin Templeton’s director of global real estate, and European portfolio managers Raymond Jacobs and Marc Wiedner.
