Pradera Europe plans to start marketing a new fund or club deal for the Turkish retail market by the end of the second quarter, Chairman Colin Campbell told PropertyEU. The fund will invest in existing assets and target an IRR of 17%, he added. It will be launched together with KREA Group, the former Turkish business partner of Merrill Lynch, headed by Hakan Kodal, Chairman of the Council of Turkish Shopping Centres.
Pradera Europe already has one large separate account for St Martins Property Corporation in Istanbul, the Cevahir Shopping Centre, where it is responsible for the asset management. Campbell: ‘We were one of the first movers into Turkey 11 years ago and have served our apprenticeship there. We spent five years learning the ropes and now have an asset management team of seven in that country.’
Pradera’s new Turkish retail vehicle will be marketed as a core fund with a target average gearing of 50%, Campbell said: ‘That is a typical gearing for our core funds, although it doesn’t match the new INREV definition which sets a gearing limit of 40% for core vehicles.’
Pradera Europe is also actively raising capital for another new fund. The first closing of its new core Pradera European Retail Fund 3 (PERF3) is expected before the end of the second quarter, Campbell said.
Pradera European Retail Fund 3 (PERF3) has a target average gearing of 40%. It will be structured as a Luxembourg FCP targeting shopping centres and retail parks in a value range between EUR50- EUR150 mln across Europe, with a 30% limit on non-Eurozone countries. The fund is targeting a net IRR of 10-12% and a cash yield of 6%.
Campbell conceded that the fund raising environment was still 'extremely difficult' due to ongoing uncertainty in financial markets, but said he expected the fund raising market to improve gradually during the year.
The May edition of PropertyEU magazine contains an indepth interview with Pradera Europe as part of a special focus on Turkey. Click on the link below to subscribe:
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