Europa Capital launches core-plus strategy for Mitsubishi Estate

Europa Capital has begun to invest in core-plus real estate in Europe on behalf of its parent Mitsubishi Estate.

The investment manager, part-owned by Mitsubishi’s Rockefeller Group International and traditionally known as a value-added fund manager, has bought an office building in Munich.

The acquisition of the 22,000sqm multi-let office building in Unterfohring, Munich, marks the start of a core-plus investment programme for the Japanese real estate developer.

Europa Capital said it would look to bring in third-party investors once the strategy had built up “critical mass”.

Nic Fox, partner at Europa Capital in Germany, said: “This off-market acquisition marks the beginning of a new product line in a lower risk area from our pan-European value-add funds.

The investment manager will initially focus on German cities before moving onto other European core office markets.

Its first asset, a property at Feringastrasse 10-12, was sold by Ekistics Property Investors 1, a value-added private equity real estate fund.

Fox said: “We strongly believe in the continuing performance of the German economy and property market and intend to assemble a diversified portfolio, attractive to institutional investors”.

Yuichiro Shioda, managing director and chief executive of Mitsubishi Estate London, said: “The real estate fundamentals underpinning both this building and the wider Munich office market make this an excellent initial acquisition for the new partnership with Europa Capital.

“As we build this new portfolio, we will be targeting further acquisitions in similarly strong markets across continental Europe.”

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