Fidelity International has raised €111m for its core, euro-zone-focused real estate fund.
The investment manager said it attracted the capital from European institutional investors over a 12-week period.
New investors from France, Germany, Ireland and Switzerland have joined the Fidelity Eurozone Select Real Estate Fund.
As IPE Real Estate has reported, pan-European core funds have been attracting new investment from institutions.
Fidelity’s fund is one of a number of vehicles in the market, although unlike most it focuses only on euro-zone countries.
It has returned 9.2% per year over the past five years, beating the INREV Continental Europe Funds Index by 5.6 percentage points.
Neil Cable, head of real estate at Fidelity International, said investors had “seen the merits of a core euro-zone strategy” following the UK’s referendum on the EU membership.
“Fidelity’s focus on high quality income from institutional-grade real estate in the core euro-zone markets has resonated with investors seeking alternatives sources of investment grade income,” he said.
“Fidelity operates a ‘bottom up’ approach to stock picking where we analyse every property on its individual merits.”
Fidelity will start its next round of capital raising, which it hopes to complete in the second quarter of this year.
Recent demand came from European investors, but Fidelity is anticipating the next round of capital to come from investors in Asia-Pacific.