Nuveen Real Estate is expanding its European logistics platform with the launch of a new investment strategy targeting €700-800 mln of assets with a long-term hold outlook.
Launched in June, the mandate has already raised €250 mln from a number of German institutional investors, all of which are already invested in Nuveen’s other logistics strategies. It follows the success of Nuveen’s first pan-European logistics strategy, which closed earlier this year with investment of over €620 mln across 21 assets.
Focusing on creating a diversified portfolio of assets across core countries, including Germany, France, Spain, Italy and the Netherlands, as well as additional European locations, the strategy is targeting high quality, modern logistics properties that are suited to all industrial uses.
Timothy Horrocks, head of Continental Europe for Nuveen Real Estate, commented: ‘Nuveen’s current investment in European logistics stands at around €3 bn, representing a 12% weighting across its European real estate AUM. The launch of this new latest strategy will help us to reach our goal of a 15% allocation to the logistics sector, equating to around €4 bn, over the next 18 months.’
Thorsten Kiel, head of European Logistics for Nuveen Real Estate, added: ‘We have had a great amount of interest from investors in our earlier logistics strategies and were able to deploy the invested capital across core European locations, which we believe are best placed to provide rental growth and strong return for our investors. With this additional launch, we are looking to build upon this existing track record, targeting prime assets in key industrial locations across Europe and constructing a diversified portfolio designed to benefit from structural trends.’
Nuveen’s global logistics portfolio represents €15.4 bn assets under management, as at 30 June 2020.
