Mitiska REIM announces €40 million capital increase on FRI 2 fund

Mitiska REIM announces €40 million capital increase on FRI 2 fund

Mitiska REIM, the leading specialist investor in convenience-based grocery anchored retail parks in Europe, has today announced that following an extraordinary general meeting held on 16 September 2019, it has realised a capital increase of approximately €40m for the First Retail International 2 Fund (FRI 2), increasing the total committed capital from investors to €263.3m.

FRI 2 was launched in 2016 and successfully closed at €223.3 million, 60% above the fund’s initial target. It invests exclusively in retail parks and convenience centres in Europe which offer convenient shopping, ample free parking and affordable infrastructure. The fund’s strategy is to create core retail properties through value-add investment strategies as well as de-risked development.

Since launch, more than €200 million of equity has been committed to investments, with a portfolio of 34 income producing properties and 13 development projects, representing 463,300m2 gross leasable area and a target net operating income of approximately €50 million. The portfolio is well diversified in terms of geography with equity allocated evenly across investments in Western, Central and Eastern Europe. The fund’s target is to deliver double digit net IRR’s to investors.

Given the fact that more than 90% of the committed equity has been allocated to investments and that FRI 2’s investment period still runs until 31 January 2021, a capital increase process was launched in June 2019 in order to enable FRI 2 investors to further benefit from the strong pipeline of investment opportunities and continue to build scale in specific markets.

Sylvie Geuten-Carpentier, Co-CEO at Mitiska REIM, comments: “We are delighted to have received the unanimous agreement of shareholders to increase the capital available to FRI 2 as well as the subscription of the majority of investors. This is a major positive endorsement of the fund’s strategy and approach, and testament to the Mitiska REIM team. Convenience-based, food anchored retail properties remain an attractive option for shoppers, retailers and investors alike, and are much less exposed to the threat of online retailing because of their convenient, cheap and comprehensive retail offering.”

Axel Despriet, Co-CEO of Mitiska REIM, comments: “This capital increase will allow FRI 2 to benefit from the strong pipeline of attractive opportunities we are seeing, allowing us to continue to build scale in our European markets, and create additional and more attractive exit options for the fund.”

For further information, please contact:

Sylvie Geuten-Carpentier
Co-CEO, Mitiska REIM
Tel: +32 495 502268