AEW to invest EUR 3.5 bn in 2010

AEW Europe plans to broker up to EUR 3.5 bn worth of transactions this year in a further sign of recovery for the European property market. The figure compares to around EUR 2 bn worth of deals completed in the course of 2009. In a statement last week, the French fund manager also said that it intends to launch new investment products in 2010 and raise new funds for its institutional and retail funds.

Last year, the company acquired EUR 1.2 bn of property across Europe on behalf of its clients. Around half of the investment volume was spent in the French market, the company said, with the UK (29%) and the rest of Europe accounting for the remainder. Around 7% of transactions took place in Germany and 6% in the Netherlands.

The company was particularly active in the office and logistics sectors which represented respectively 46% and 39% of transactional activity. Retail and residential accounted for the remaining 10% and 5% respectively. Almost one third of the acquisitions (28%) were carried out through the group's Episo vehicle while the CCPII fund was behind 13% of deals.

The fund manager has also been an active seller especially in the fourth quarter of 2009. AEW Europe divested EUR 0.8 bn worth of property in 2009, divided over 20 transactions, with the vast majority transacted in France (84%). Office deals represented 56% of divestment volumes, while retail assets accounted for a further 32% and residential accounted for the rest.