Investors in AEW Europe’s French high-street retail fund have agreed to extend the vehicle’s life and to raise additional capital.
AEW was due to start liquidating Fondis 1 this year, but the four shareholders in the fund have instead decided to extend the vehicle’s life by more than five years.
The fund has a portfolio with a gross value of €360m, which is invested in shops in cities across France.
“This is a portfolio that would be difficult to build up,” said Rob Wilkinson, AEW Europe’s head of European fund management and separate accounts.
“We think French retail is an attractive strategy”. Wilkinson said AEW will undertake an additional capital raising of about €200m.