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€350m first close for Europa fund that shuns legacy sectors

Venray 1, in the North Limburg region of the Netherlands.

Europa Capital has raised €350 million in the first close of the Europa Diversified Income Fund (EDIF), a new open-ended vehicle.

Europa’s principal shareholder, Mitsubishi Estate Co, provided seed capital and the fund also received backing from both European and Asian institutions, Europa said in a statement.

The initial seed portfolio, which has an NAV of about €350 million, comprises logistics, residential and office investments. The portfolio is 99% occupied and recorded 99% rent collection in both Q2 and Q3 2020, “demonstrating its resilience during the COVID-19 pandemic”, Europa said.

With leverage, the fund has capital remaining to acquire more assets and diversify the portfolio and, with Keystone Investment Management, recently acquired the first of three residential buildings in the Øresund region of Copenhagen.

Fund targeting ‘stronger economies’ in Western Europe

Europa said EDIF was designed for an international investor audience. The fund is focused on investing in logistics, residential and offices and intends to capitalise on structural changes such as innovation and urbanisation. Geographically it will target Western Europe’s stronger economies, with a focus on France, Germany, the Netherlands and Denmark.

Europa Capital said the fund will aim to outperform market benchmarks, including ESG considerations.

“EDIF represents a new brand of core fund,” Europa Capital parner and fund manager Andy Watson said. “With no assets in retail and hospitality and no UK exposure, there are currently no legacies dragging on performance,” he said.