Pictet Group’s alternative investment business has raised €700m for its first direct real estate fund.

Pictet Alternative Advisors said the value-add Elevation I fund – which was launched in the second quarter of last year with an initial target of €400m – reached its hard cap target.

The fund has invested an undisclosed sum to buy three last-mile logistics assets in the Greater London area and a mixed-use building in Madrid, the manager said.

The Elevation I fund targets gateway cities in Germany, Spain, the UK and Nordics and seeks to improve the sustainability of the acquired assets by using proptech tools throughout the investment process.

Zsolt Kohalmi, global head of real estate and co-CEO of Pictet Alternative Advisors, said: “Real estate investing is undergoing a significant transformation due to changes in technology, sustainability goals, and the ‘Hotelisation’ of real estate, which will provide value-add opportunities for active managers in the coming years.

“We strongly believe in the growth of private assets within Pictet, and we will significantly expand our investment activity in this space in the coming years.”