Valad Property Group has completed the first close of its €500m (£399m) French industrial fund.

The Australian listed property group said today it had completed an equity raising of €96m (£76m) and raised €100m (£79.8m) of debt for the Parc d’Activités fund.

The equity was raised from nine institutions with Valad investing €5m (£3.9m) itself. An undisclosed German bank has provided the debt to be repaid after five years. The fund’s gearing is not expected to exceed 65%.

The fund is to invest in multi-let industrial estates predominantly located in the Ile-de-France area over a ten-year period. It is targeting properties where it can enhance their value through asset management.

The first properties to be placed into the fund are a quartet of industrial parks, valued at €102m (£81.4m). These seed properties were transferred from Valad Continental Partners, Valad’s joint venture with HBOS.

Valad is aiming to provide investors with an annual internal rate of return of 12% over the lifespan of the fund.