AEW has been awarded a separate account mandate from a German pension scheme to create a pan-European, core real estate portfolio.
The investor has initially committed €100m for both commercial and residential real estate.
AEW said it expects the portfolio will be expanded over the next few years.
Marc Langenbach, head of fund management and separate accounts Germany at AEW, said: “The aim of the mandate is to build a sustainable real estate portfolio with an attractive dividend yield for our client.
“The investment strategy will be focused on investment opportunities in markets that will benefit from growth in tenant and investor demand.”
More than €100m of assets are already under exclusivity, he said.
“We have already made significant progress in building the portfolio.”