PARIS-European fund management group Aerium has launched a new fund to invest up to $161 million in prime retail real estate opportunities in France. It aims to raise up to $80.5 million in equity for the new Aerium Vendome I Fund, which will come under the group's umbrella Special Opportunities Fund. With gearing, it expects to have double this amount to invest.

The fund will target a rate of return of 9%-11% after all fees, and aims to pay a quarterly income distribution of 5%-6% of contributed capital. CB Richard Ellis will act as placement agent on behalf of Aerium. The fund’s investment strategy will focus on retail properties in and around Paris and on high-street and edge-of-town units in the main regional centers with large catchment zones and a successful retailing history.

"We are seeing continued appetite from investors to acquire French retail real estate. We believe this is the right time to invest in this asset class and we are extremely confident that our team of real estate professionals in Paris will be able to deploy the capital quickly and generate the target returns for our investors," said Aerium France chief investment officer Daniel Bendavid. Aerium's Paris team currently manages over $1.9 billion of assets and 600 tenant relationships across its retail and office portfolio.