a.s.r. Real Estate Investment Management (‘a.s.r. REIM’), the real estate investment management division of Dutch insurance company a.s.r., has completed the second closing of the a.s.r. Dutch Prime Retail Fund (‘the Fund’), with subscribed capital of € 75 million. a.s.r. REIM launched the Fund in July 2011, and completed an oversubscribed first close of € 380m in December 2011.
Bas Tiemstra, Fund Manager of the Fund and Managing Director Commercial Real Estate at a.s.r. REIM: ‘During the last 18 months we have been able to attract more than € 450 million of capital. This second close has a bolstering effect that consolidates the transition of a.s.r. REIM into an international fund management business. We currently manage a significant portfolio worth approximately €4 billion of retail, residential and office assets as well as agricultural property in the Netherlands. Over time, we intend to bring investment opportunities of a similar high quality to the market as we continue to deliver on our strategy of growing a strong real estate investment management business.’
Mark Evans, Head of Equity Placement, CBRE Real Estate Finance: ’To have achieved a second close in such a short space of time in the current economic environment is testament to the quality of the portfolio, and the strength of the fund’s structuring and performance. With added upside built in from a pipeline of compelling development and asset management opportunities, and under a.s.r. REIM’s stewardship, this strength of offering has not been seen in the market for some time.’
With the addition of a French and a Swiss institutional investor, subscribers to the Fund now comprise of five leading institutional investors from across Europe. a.s.r. REIM has also received additional indications of interest from other European investors. a.s.r., the original owner of the seed portfolio, also remains committed to the Fund as a long-term cornerstone investor.
Fund’s portfolio valued at €1.2 billion
The Fund comprises a diverse portfolio valued at more than €1.2 billion, providing investors with immediate exposure to circa 205 prime Dutch retail real estate assets let to over 630 tenants. The portfolio consists of solitaire/single high street units, shopping centres and supermarkets covering a lettable area of circa 324,000 sqm and also has a pipeline of attractive secured investment opportunities valued at approximately €265 million.
The Fund’s structuring
The Fund is a contractual mutual fund, governed by Dutch law, with an indefinite life and will maintain a low level of gearing to provide liquidity for the fund manager and enable redemptions for investors where necessary. It has also been set up in line with INREV Guidelines to ensure best practice reporting and ongoing transparency for investors.
a.s.r. REIM was advised by placement agent, CBRE Real Estate Finance. De Brauw Blackstone Westbroek provided legal advice and PWC acted as tax lawyer to the Fund.