6 December 2010
Pradera retail fund looks to France and Italy.
Pradera Europe’s Open-Ended Retail Fund (POERF) is looking for assets in Italy and France following the acquisition of three shopping centres in Poland earlier this month. The Polish malls are being bought from UK-based investor Carpathian for a total of EUR 40 mln.
POERF targets shopping centres and retail parks in a value range between EUR 30-70 mln across Europe. The fund, which had its first closing in December 2009, is structured as a German KAG. Aside from its Polish assets, the fund owns three retail parks in the UK.
‘We need now to invest more in the Eurozone for this fund and our focus is probably on Italy and France,’ Colin Campbell, chairman of Pradera Europe, told PropertyEU.
‘France is historically a very tight market with relatively limited supply and a relatively large number of buyers. At the moment there is a little bit more to buy and slightly fewer buyers so we see some possibilities in France,’ Campbell said.
The balance is different in Italy. Campbell: ‘there are certainly buyers but there is also more stock available. Italy is an easier market and on balance it is probably more likely that the next acquisition will be in Italy than in France. But that won’t stop us looking very hard in France.’
The fund’s next transaction could however also be in another market if the right opportunity comes along. Pradera Europe invests in authorised markets when the time is right rather than ‘slavishly following weighting criteria’. But Campbell said it is likely the next deal will be in either Italy or France.
Pradera Europe is currently fundraising for its Pradera European Retail Fund 3. The target is to raise about EUR 500 mln of equity over the next 15 months. The fund manager expects to have a first close early in 2011, but it could happen sooner. ‘There seems to be a good level of investor interest and we have a good number in detailed due diligence working towards a closing,’ Campbell said. Pradera European Retail Fund 3 will be authorised to invest in CEE as well as the Eurozone.
