European property funds followed up an active first quarter — according to IREI’s FundTracker database, European funds with a final close in the first quarter raised a total of $10.7 billion (€7.7 billion) — by continuing to raise capital in the second quarter.

Newly-formed TIAA Henderson Real Estate started work quickly, launching the Core German Retail Fund, a core and core-plus fund that will invest in German retail, including specialist retail parks, self-service department stores, hybrid malls and inner-city shopping centres.

The fund is seeking €400 million and does not currently have a target first-close date. Target properties will be at least 7,500 square metres in size. The fund will have an anticipated distribution yield of 5.5 percent per year during