Scottish Widows Investment Partnership and Cushman & Wakefield Investors have raised €100m for their pan-European urban retail fund. Three European institutional investors have invested in the PURetail Fund, which will gear up to invest €200m. The fund will buy UK, French, German and Swedish city-centre shops in lot sizes up to €40m and seek 10-12% annual returns.
Despite recent UK consumer spending figures being the weakest for 16 years, SWIP director of real estate Malcolm Naish said: “The best retailers have shown resilience in the downturn, taking space in the strongest locations in the best markets. “The fund will offer investors a stake in the high street across some of the main markets.” A second closing is planned for the fund at a later stage.