Bouwfonds Investment Management, the Hoevelaken, Netherlands-based real assets firm, has been awarded a €200 million mandate by an unnamed German pension fund to invest in car parks across western Europe and the UK.
Bouwfonds European Real Estate Parking Fund (BEREPF) IV is the firm’s fourth vehicle dedicated to the sector. The fund, which has a 10-year term, is expected to deliver an internal rate of return of 6 percent.
The firm said up to 40 percent of the capital raised would be invested in parking assets in Spain, Italy, Portugal and Ireland.
“Demand for car park investments among institutional investors remains high. The asset class of car park properties is also proving to be a good fit for the current investor demand for stable yet attractive cash flows,” said Martin Eberhardt, managing director at Bouwfonds IM.
Bouwfonds IM bought a portfolio of 17 car parks worth around €250 million for its previous car parking vehicle, BEREPF III.
Since launching its first parking-specific fund over ten years ago, Bouwfonds IM has specialised in vehicles of this type. Its assets under management in the sector stands at around €870 million currently with properties in the Netherlands, the UK, Ireland, France, Germany, Spain and Norway.