Franklin markets €300m real estate FoF

Global asset manager Franklin Templeton Investment has raised €60m for a European private equity real estate fund of funds from investors including UK and Nordic pensions.

Franklin Templeton Investment, the international money manager, is looking for institutional commitments to a new European private equity real estate fund of funds. The structure, which is managed by Franklin Templeton subsidiary Fiduciary Trust International, has a €300 million ($350 million) target. Today, the group announced a first closing on €59.5 million.
 
Franklin Templeton has made a €10 million contribution to sponsor the vehicle. Other investors that have committed to the structure include a number of unnamed local authority funds in the UK as well as some Nordic pension funds, according to a press release.
 
Domiciled in Luxembourg, the fund of funds will aim to invest in funds managed  by private equity real estate managers active in Europe.
 
Raymond Jacobs and Marc Wiedner of Fiduciary Trust will lead the fund’s manager selection effort.
 
“The timing of the fund’s establishment coincides with an increased interest among European institutional investors in private real estate fund investments,” said David Smart, managing director of Franklin Templeton Institutional. “As a result, an increasing number of institutions are making investments in European real estate markets as they seek diversification into uncorrelated asset classes with the potential for higher returns.”
 
Fiduciary Trust is a seasoned investor in the real estate sector. Since 1996, the group has committed €1.2 billion of client capital to 48 private real estate funds in Europe, Asia and America.