Real estate manager AEW has acquired a life science asset on behalf of its open-ended pan-European core fund from Aventin Real Estate.

AEW’s Eurocore fund has made its debut investment in the German life sciences market, with the acquisition of the fully-let 10,900sqm asset in Gräfelfing, Munich, for an unspecified sum.

The latest deal brings Eurocore’s total portfolio to €525m in assets under management, comprising 320,000sqm of space across logistics, residential, office and life sciences sectors in strategic locations in Germany, the Netherlands, France, Denmark, Italy, Austria and Spain.

Jeffrey King, senior fund manager at AEW, said: “This acquisition represents our first in the German life sciences sector and builds on our existing investments in this asset class in Denmark, also through Eurocore. The life sciences sector continues to thrive in Germany, supported by strong industry fundamentals, which are driving increasing demand from tenants for modern space situated in established life science and biotech hubs such as Gräfelfing.

“For these reasons, we maintain our conviction in this sector, which we believe offers an attractive risk-return profile for our investors. This investment generates secure, long-term, and indexed income from three major players in this space, while its outstanding ESG credentials support the fund’s sustainability strategy.”

Niklas Räther, head of investment Germany at AEW, said: “Munich remains one of AEW’s key target markets in Germany, with strong fundamentals and proven liquidity across all real estate sectors.

“With this acquisition, we further strengthen our footprint in the market, adding an asset that underlines the fund’s commitment to a future-proof asset class.”

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