Palmira raises EUR150m for first closing of new corporate real estate fund
Palmira Capital Partners (Palmira) has raised EUR150 million for the firsg closing of its new corporate real estate fund.
Palmira’s third corporate real estate fund plans to establish portfolio that is broadly diversified, both regionally and across sectors. The focus is on commercial and small-scale office parks in Germany, together with production properties that may also be acquired for the fund through sale-and-leaseback transactions. The first fund in the corporate real estate segment, "First Business Parks", was launched in 2015 and already successfully realised in 2018 with an overall performance of 16 per cent pa IRR.
Equity commitments of around EUR150 million had been received by the now-completed first closing. Half the total is provided by investors who had already participated in the predecessor fund UIC 1 (Palmira Unternehmensimmobilien Club 1).
The new fund, which is aimed at institutional investors, has a target equity capital volume of around EUR250 million. A total investment volume of some EUR450 million is therefore possible. The planned distribution yield is 6.25 per cent pa. The first properties are already being investigated for acquisition.