Irish Life Investment Managers (ILIM) is seeking an additional €200m from institutional investors to close the first round of funding for its new European property fund.
The portfolio manager says it has already raised €300m in equity commitments for the fund, which will target developments in “blue chip markets” across the continent. ILIM says it aims to grow the fund’s portfolio to over €1 billion.
The fund completed its first two real estate transactions, both for newly developed programs. It has purchased a nearly 17,000 m² logistics hub in Brussels, as well as a 7,000 m² office development in Strasbourg, the French city that is home to the European Parliament, which adjoins the ILIM fund’s asset.
The Strasbourg complex is already leased to four long-term tenants, including the local cooperative bank Crédit Mutuel.
Martin O’Reilly, head of real estate at ILIM, said market disruptions from inflation and interest rate pressures, as well as the shift to more durable assets, will create more opportunities. for the fund.
Paul Baragwanath, the fund’s manager, said the leases in his first two property deals would provide “a natural hedge against external inflationary pressures”.