Real estate investment manager ECE Real Estate Partners has set up a new preferred equity fund backed by a portfolio of three German neighbourhood shopping centres with a market value in excess of EUR 500m.
The new “ECE Preferred Equity Fund” (EPEF) has secured capital commitments of more than EUR 100 million from institutional investors. In addition, ECE Real Estate Partners has issued a EUR 100 million bond to finance the acquisition of the portfolio. Strong alignment of interest has been secured by the Otto Family acting as an investor in the common equity piece of this structured transaction.
EPEF is targeted at long-term investors striving for high income and regular distributions but also seek downside protection in a market which is attractively priced but still undergoing structural changes. With the successful issuance of its first bond and its first preferred equity fund, ECE Real Estate Partners has significantly extended its product range as an investment manager.
