AEW, the global real estate investment manager, has secured a new €375 mln separate account investment mandate from Samsung SRA Asset Management (Samsung SRA).
Over the course of 2023 and into 2024 AEW will seek to invest in repriced European core and core plus assets as the market continues to correct following recent interest rate rises. The mandate will seek to invest alongside other investors in a co-investment strategy, increasing the overall investment volume.
The investment strategy is primarily focused on office and logistics, but will also consider residential (build-to-rent and student accommodation), life sciences and other asset classes across Europe with proven high occupancy rates and a strong tenant base. The mandate will have a long term strategy to invest in core and core plus assets and will seek to take advantage of the recent re-pricing following recent interest rate rises.
Geographically, the mandate will target Europe’s tier one and capital cities across Europe, with a particular focus on the strongest and most liquid markets. The UK is an immediate priority as it is proving to be the quickest to reprice, as well as Germany and Spain, followed by France.
Tim Sankey, head of Separate Accounts in London at AEW, commented: ‘To secure this significant investment mandate following a competitive process demonstrates our team’s ability to structure bespoke strategies that match our clients’ requirements and an endorsement of our strong track record of putting together co-investments. While we have already identified a number of investment and JV partners, we expect the broader macroeconomic conditions to lead to a further repricing of assets across Europe over the course of the year leading to additional opportunities as this phase of the cycle plays out.’
Rob Wilkinson, European CEO at AEW, added: ‘As markets continue to reprice, we will leverage our investment platform to secure opportunities across Europe that meet the mandate’s investment objectives. We are grateful for the trust that Samsung SRA have placed in AEW and look forward to building this partnership over the long term.’
