Dutch metal workers' pension fund PMT has committed €250 mln or about half of the equity raised by Morgan Stanley's Prime Europe fund during the initial fundraising round.
The core investment vehicle follows the launch by Morgan Stanley of similar funds in the US and Asia.
PMT, which has been building a core real estate portfolio since 2014 through its fiduciary manager, Dutch asset manager MN, said in a statement that the decision comes after two years of negotiations and follows its 'successful' investment in earlier Morgan Stanley European and North American vehicles.
Besides the commitment to Morgan Stanley Prime Europe, PMT also committed another €600 mln to a number of core real estate managers. The commitments will be invested in the period 2020-2023, with a focus on logistics, residential and offices in major urban areas throughout Europe. The investment strategy is focused on returns mainly from income, but takes into account the possibilities arising from several megatrends (especially urbanisation, demographic shifts and digitalisation).
PMT’s CIO Hartwig Liersch commented: 'European core real estate offers a right fit for the strategic goals that PMT has for its investment portfolio. This investment in a new core real
estate fund like Morgan Stanley Prime Europe is another logical step in the creation of a strong income producing real estate portfolio.'
