Nuveen Real Estate has launched its first dedicated pan-European diversified value-add strategy, having secured around €180m in initial commitments from investors including Danish pension fund Sampension.
A Danish institutional investor and Nuveen’s parent company, TIAA committed around €50m each, while a further €75m came from Sampension – taking the strategy more than halfway towards its capital-raising target of €300m in 2023.
The strategy, based on a cross-sector outlook, is seeking opportunities across Europe and the UK, initially focusing on urban logistics, housing and alternatives. It aims to provide a solution for institutional investors looking to access potential returns through mispricing and repositioning opportunities in line with global megatrends.
These structural trends, driven by shifts in demographics, sustainability and technology have coincided with a re-rating of the cost of capital in the wake of higher inflation, interest rates and financing costs. This move, Nuveen said, represents a unique opportunity for the deployment of the strategy’s capital over the next 12-18 months.
Nuveen’s European value add strategy intends to build on the real estate investor’s strong track record of finding value-add opportunities in Europe.
David Pearce, a European real estate fund manager at Nuveen, said: “The European real estate market is adapting to major shifts in the macro-economic environment with investors seeking opportunities in an era of rising interest rates and increased costs across the supply chain. As such, we have identified an opportunity to deliver new areas of potential value to our investors by sourcing assets that can meet the needs of an evolving world.”
Torbjørn Lange, head of real estate and infrastructure at Sampension, added: “We’re delighted to have this opportunity to invest in Nuveen’s European value-add strategy. Nuveen has a well-run European investment and asset management platform with a long history and a good corporate reputation.
“In addition, there is a clear alignment between us as long-term investors, and we believe this investment opportunity is a good fit for us, not only because we look for an excellent company that invests in quality real estate, but also because we believe it will offer a good hedge to provide attractive inflation-adjusted returns to our pensioners.”
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