Nuveen Real Estate has raised an initial €150m from “several German institutional investors” for its new European debt strategy which seeks to raise €500m.

The investment manager disclosed that the first close of its fourth debt strategy in the European commercial real estate debt series was backed by a number of unmanned German institutions alongside Nuveen’s parent company, TIAA.

Nuveen said the latest fund is the firm’s first pan-European debt strategy in the series.

Christian Janssen, the head of commercial real estate debt in Europe at Nuveen Real Estate, said: “Since the global financial crisis, the European real estate debt market has changed significantly. The retrenchment of traditional bank lenders and the impact of the coronavirus pandemic has created a significant opportunity for non-bank lenders to enter the European real estate debt market and grow its market share.

“As such we believe European commercial real estate debt can offer investors attractive risk-adjusted returns relative to fixed-income investments and potential down-side risk mitigation.”

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