Fundraising

Valad raises A$158m for French fund

The Australian firm wants to coral A$ 822 million for Parc d'Activités, which targets industrial property in France. The fund is being seeded with four industrial parks recycled from a Valad joint venture.

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Valad Property Group has held a first close of Parc d'Activités, with nine international institutional investors subscribing for a total of A$158 million ($151 million;  €96 million) of equity.

Parc d'Activités is targeting multi-let industrial estates primarily located in the greater Paris area of Ile-de-France, and hopes to achieve 12 per cent annual internal rate of return over the fund's 10-year life.

So far, the vehicle has collected together four industrial parks in Ile-de-France for A$168m in roder to seed the vehicle. Those assets have been recycled from Valad Continental Partners, the firm's  warehouse property joint venture with Halifax Bank of Scotland.

Valad's initial co-investment in Parc d'Activités is A$8m, representing 5 per cent of the committed equity. A German bank is providing a first tranche five-year debt facility of A$165m, the firm added. The fund's gearing is not expected to exceed 65 per cent loan to value.

Since the beginning of the year the firm has raised A$740 million and A$ 910 million of debt for the establishment of Valad Opportunity Fund (VOF) UK, Nordic Aktiv 2 fund and Parc d'Activités in Europe, as well as the creation of VOF 12 and the Gold Fields Club Fund in Australia, plus a second capital-raising for the V Plus fund.