US fund Colony Capital and French investment group Eurazeo have set up a joint property vehicle, with a target size of ¬400m, to focus on western Europe.
Colony Capital will put in 2.5% of the capital, raising additional equity from clients to reach a total of ¬200m. Eurazeo will contribute 20% of the equity (¬80m), raising a further ¬120m. The fund’s first closing will take place in May or June this year. Sebastien Bazin, European director of Colony Capital Funds, expects to have raised ¬350m by then.
“We will invest around 50% of the fund in offices, 25% in hotels, with the remaining 25% invested in recapitalisations,” Bazin says. According to Eurazeo’s managing director, Bruno Keller, the fund will mainly target “France, Spain, Italy and the UK, although we will be very opportunistic”.
Bazin says that any deals undertaken will be split equally between its Colony VI fund in the US and its venture with Eurazeo.
