Fidelity International has revealed that its Fidelity Eurozone Select Real Estate fund raised €300 mln of new capital in 2017.
Funds arrived from a range of European countries, including Germany, France, Switzerland, Italy, the Netherlands, the UK and Ireland. According to Fidelity, another key motivation of investors was a desire to limit currency risk, met by the Eurozone-only exposure of the fund.
'Investors want a combination of stable and growing income and a track record of delivering growth,' commented Neil Cable, head of real estate at Fidelity International.
'At this stage of the cycle they are also seeking out investments that avoid unnecessary risks such as less liquid markets in Southern or Eastern Europe, or mixing exposure to markets with different currencies. We believe we are in an extended cycle and ‘core’ Eurozone markets such as Germany, France, Benelux will continue to see steady growth this year.'
Nearly two thirds of the capital raised has already been invested comprising four assets with an average acquisition yield of 5.5%.
The fund has been most actively acquiring in France and Germany, and is looking increasingly to the Benelux markets.
'Heading into 2018, we will continue to stick to our ‘core Eurozone’ strategy, aiming for our traditional mix of income and growth but with an increasing emphasis, at this stage of the cycle, on the former,' Cable added.
