Mitiska REIM has announced the final closing of the Mitiska European Real Estate Partners 3 European value-add fund at EUR 310 million.
This close, according to Mitiska REIM, exceeds the initial EUR 300 million target and represents a 39% increase in funds raised compared to the preceding fund at final close.
MEREP 3 is the third flagship fund from Mitiska REIM and focuses on the accelerating opportunity in convenience real estate across Europe, targeting food-anchored retail parks, multi-let light industrial, self storage, and urban logistics projects. MEREP 3 aims to capitalize on the increasing demand from a growing range of end users for urban infill sites that offer accessible locations, affordable buildings, flexible design and sustainable solutions.
In January this year, Mitiska REIM announced a EUR 50 million co-investment alongside MEREP 3 from the European Bank of Reconstruction and Development. Including debt financing, the fund will have a total investment capacity of up to EUR 1 billion to invest in convenience real estate projects across Europe.
MEREP 3 aims to deliver future-proof sustainable assets, targeting “Very Good” to “Excellent” BREEAM ratings at the asset level, and a GRESB rating on the fund. In addition, MEREP 3’s ESG policy also includes the commitment for each asset to be 10 years below the CRREM pathway after completion of the value-add program.
The fund has already committed 35% of capital to a portfolio of convenience real estate assets, with eight investments totaling EUR 107 million already secured, and what Mitiska REIM describes as “a strong pipeline of additional assets currently under due diligence and negotiation.”
“We are delighted to exceed our initial fundraising target which is testament to the strong support from both existing and new investors,” commented Sylvie Geuten-Carpentier, Managing Partner of Mitiska REIM. “We would like to thank all our investors for their confidence in both our investment strategy and platform, the Mitiska REIM team for delivering such a successful fundraising and initial deployment of capital, and our local teams and operating partners for securing high potential opportunities across our European markets.”
Axel Despriet, Managing Partner of Mitiska REIM, adds: “As we look to the coming year, we believe that a window of opportunity is clearly opening up, providing an attractive entry point for specialized value-add investors like Mitiska REIM to capture a recovery in real estate markets across Europe. We think convenience real estate is well positioned, particularly for investments that require capex and hands-on asset management, and believe that MEREP 3 could become an exceptional vintage by providing us with the dry powder to capitalize on the current market conditions and opportunities.”
