Multiplex Capital, the property funds management division of Multiplex Group, will establish a new European property fund, the Multiplex European Property Fund (MEPF).
The fund’s assets will initially comprise 67 properties throughout Germany, valued collectively at $595 million, although the fund will look to acquire assets throughout Europe.
MEPF will be managed from Sydney, while the property portfolio, which is weighted towards the retail sector, will be managed from Luxembourg, with the assistance of vendor group REIT AM GmbH.
Key features of the properties, 84 per cent of which are less than seven years old, are a 98.5 percent occupancy rate and ‘blue chip’ tenants with long-weighted average lease terms of approximately 10 years.
Settlement of the portfolio, as well as capital raising for MEPF, are due to take place in the second quarter of next year.
Multiplex Capital managing director Ian O’Toole said MEPF represents the next phase of Multiplex Capital’s strategy to “build on what is now a substantial funds management platform”.
“We are creating a constellation of funds that offer a wide variety of equity participants a range of outstanding investment vehicles in a number of geographic markets.”
He said he anticipates strong investor demand for the fund, describing Germany as a “significant global property market with positive indicators for growth”.
