Global Investment Partners (GIP), CBRE鈥檚 multi-manager, has raised $840m (鈧�770m) from six UK, European and US pension funds for a new value-add fund.
The vehicle 鈥� the fund-of-fund platform鈥檚 first in Europe 鈥� is targeting assets in the logistics and retail sectors, both undergoing significant change as a result of e-commerce.
CBRE GIP chief executive Jeremy Plummer told IPE Real Estate that the UK, France and Spain are the fund鈥檚 main focus.
鈥淭here are clear structural consequences of e-commerce,鈥� Plummer said. 鈥淲e鈥檒l be looking for investments where e-commerce has been positive for logistics and is still positive for retail.鈥�
The closed-end, seven-year fund could also consider assets in the Nordics and Germany, Plummer said.
The fund, targeting co-investments and joint ventures, is expected to deliver a 15% net IRR.
CBRE GIP bought a portfolio of logistics assets in France for 鈧�240m.
The platform bought the 440,000sqm Nautilus portfolio in a joint venture with Arax Properties, which will manage the properties.
Plummer said the assets were bought at 鈥渂elow replacement cost鈥� and would provide the fund with 鈥渁ttractive, cash-on-cash income鈥�.
In the UK, the fund is investing with joint venture partners Roxhill in what Plummer described as a 鈥渞are opportunity鈥� within London鈥檚 M25 circular motorway.
The 2m sqft Howbury Park site, near Dartford to the south east of the UK capital, has planning consent.
鈥淚t鈥檚 a unique opportunity,鈥� Plummer said, pointing to the site鈥檚 rail and road links.
In the retail sector, the fund is targeting 鈥渋nternet-defensive鈥� assets, he added.
The fund has also bought high street assets in central Madrid.
鈥淵ou need to be selective when investing in retail,鈥� Plummer said.
鈥淭here鈥檚 been a narrowing as retailers reduce their footprints for everything other than food.鈥�
