GE Capital Real Estate is launching a €1bn fund to invest in office assets in Greater London, Greater Paris and Berlin, Frankfurt, Hamburg and Munich.
The new “Gateway” vehicle has secured equity commitments totalling €400m “from third party sources” to acquire, with leverage of up to 60%, core plus and value-add office assets.
The total target size of the asset base is expected to be approximately €1bn and the investment period is two years, with the option of a one-year extension.
Jonathan Kern, president of GE Capital Real Estate Global Investment Management, said: “It is a significant achievement to have raised €400m for this new vehicle, particularly in the current economic environment.
“Gateway is another milestone for our investment management business and is a testament to our depth of experience and track record in the European commercial property market.”
Thierry Leleu, general manager EMEA, GE Capital Real Estate Global Investment Management, added: “This is a result of outstanding team work across the globe.
“We are now sourcing suitable investment opportunities that fit the strategy of the new vehicle. Our French, German and UK teams are currently working towards identifying prospective investment possibilities and have been doing so for the past few months.”
bridget.o’connell@estatesgazette.com
