11 Jul Mitiska REIM holds €137 million first close on MEREP 3 value-add fund
Strong first close sets up MEREP 3 for a substantial fundraising increase from investors across Europe
Mitiska REIM, the leading specialist investor in European convenience real estate, has today announced the first close at €137 million of its third flagship fund, Mitiska European Real Estate Partners 3 (MEREP 3), giving the fund over €270 million in immediate investment capacity. MEREP 3 aims to substantially increase the fundraising and plans further closings in the next 12 months.
This third vintage fund continues Mitiska REIM’s focus on the accelerating opportunity in convenience real estate across Europe, targeting grocery-anchored retail parks, last-mile urban logistics and multi-let light industrial opportunities in urban infill locations. MEREP 3 aims to capitalise on the increasing demand for those urban infill sites that offer accessible locations, affordable buildings, flexible design and sustainable solutions to a growing range of end users. The fund strategy targets the increasingly integrated brick-and-mortar and e-commerce distribution formats in these most desirable locations.
MEREP 3’s investment strategy targets light to heavy value-add investments, including repositioning, reconfiguring and retrofitting of existing properties and de-risked development projects, targeting a net IRR of 12-15%. This latest fund builds on the strong track record and performance delivered by the preceding funds which are on track to realise 12-15% net IRR with attractive annual distributions to investors.
Investors in MEREP 3’s strong first closing include a diverse group of institutional investors, receiving both a vote of confidence from the vast majority of existing clients and from new investors, including pension funds, insurance companies and family offices. In line with Mitiska REIM’s ESG strategy and its 2035 net zero carbon ambition, MEREP 3 will seek to deliver future-proof sustainable assets, aiming for “Very Good” to “Excellent” BREEAM ratings at the asset level and a GRESB rating on the fund.
Sylvie Geuten-Carpentier, Managing Partner at Mitiska REIM, comments: “We are delighted with the initial support from both existing and new investors and to secure such a strong first closing of €137 million in only 3 months. Our platform consisting of an experienced international team of over 30 professionals and an established European network of local operating partners in more than 10 countries has already started to identify and secure an attractive pipeline of investment opportunities targeting value-add returns.”
Axel Despriet, Managing Partner at Mitiska REIM, adds: “To attract this level of capital to our third value-add fund despite market uncertainty and cloudy macroeconomic conditions is a testament to the solid track record of the preceding funds, the strength of our team and the clear focus of our convenience real estate strategy. We are very excited by the opportunity in convenience real estate and the value that can be created by taking a holistic approach to investing in grocery-anchored retail parks, last-mile urban logistics and multi-let light industrial projects.”
Argo Law (Philippe Rens and Freya Jorens) provided legal and tax advice to Mitiska REIM in connection with the set-up of MEREP 3.