France-based MNK Partners established a €200 million pan-European real estate fund under the Luxembourg Reserved Alternative Investment Fund, or RAIF, regime, REFI Europe reported.

Luxembourg launched the RAIF regime in 2016 to offer additional flexibility to alternative fund managers and their investors. The launching of funds under the structure is not subject to approval from Luxembourg's public financial regulator, Commission de Surveillance du Secteur Financier, allowing them to become operational more quickly.

The eight-year fund will aim to raise €100 million of equity and €100 million of debt over a three-year investment period. It will invest in commercial real estate assets across Europe, targeting a net annual return of 5% to 7%, the March 20 report added.

MNK Partners will market the fund through partnerships with family offices, private banks and wealth managers in France, Switzerland and Luxembourg, REFI Europe reported.