DWS has launched an open-ended real estate fund to target residential and living sector assets in Europe.

The manager’s new vehicle will initially target larger metropolitan living markets with a primary focus on Germany, Nordics, Netherlands, Ireland and France, and a secondary focus on emerging residential and living markets in the UK, Spain and Italy.

DWS already has over 50 years of open-ended European fund track record and an established local presence in key European target markets. 

Clemens Schaefer, head of real estate, APAC/EMEA at DWS said: “DWS is a leading investor in the living space with a deep knowledge built over more than 15 years of investing in this sector for our clients. Our European residential portfolio is substantial at over six billion euros.”

“For core investors looking for income diversification, residential is a great asset sector compared to others, proving defensive at times of market stress.”

Jessica Hardman, head of European portfolio management at DWS said: “As residential investments continue to gain importance, our strategic focus will be affordable residential assets in urban and commuter locations in Europe’s major metropolitan areas with strong long term investment fundamentals.

“As a dominant investor in the living sector we have a continuous pipeline of strong investment opportunities.”

Simon Wallace, co-head of DWS real estate research, said: “Proven resilience of the sector, along with constrained supply and healthy demand drivers underpin the attractiveness of residential.

“We see the institutionalisation of the European residential market continuing as investors look toward strategies with stable cash flow through sustained levels of occupancy.”

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