HAMBURG, GERMANY-ECE Group has launched a $2.8 billion fund to acquire shopping centers in Germany, Poland, Hungary, Austria and the Czech Republic. The firm has already raised $1 billion in equity for the ECE European Prime Shopping Center Fund, and expects to raise another $110 million by September.
Volker Kraft, a managing director at the firm, said in a statement that the company sees investment opportunities in the revitalization and modernization of shopping centers. Development projects will not be acquired, and both management and leasing of the purchased centers will be taken over by subsidiary ECE Projektmanagement.
Alexander Otto, CEO of the subsidiary, said that the fund allows ECE to respond to the demand of the market. “Many financial investors don’t have the special expertise necessary to find and upgrade suitable centers,” Otto said in a statement. His family has provided about $140 million into the fund.
The company has already secured three centers for $225 million. The centers include Stern-Center in Postdam, Germany; Linden-Center in Berlin and Galeria Kaskada in Szczecin, Poland.
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