Investment manager, Nuveen Real Estate, has launched its first dedicated pan-European diversified value add strategy.
The company has raised around €180 mln of initial commitments.
Investors include a Danish institution and Nuveen’s parent company, TIAA, which have committed around €50 mln each while a further €75 mln is coming from the Danish pension fund, Sampension, taking the strategy over halfway towards its capital raise target of €300 mln, which it will continue fundraising for during 2023.
The strategy will have a ‘cross-sector outlook’ and will source opportunities across Europe and the UK initially focusing on urban logistics, housing and alternatives.
It aims to provide a solution for institutional investors looking to access potential returns through ‘mispricing’ and repositioning opportunities in line with global megatrends.
The company said: ‘These structural trends driven by shifts in demographics, sustainability and technology have coincided with a re-rating of the cost of capital that is derived from higher inflation, interest rates and financing costs.’
‘This represents a unique opportunity set for the deployment of the strategy’s capital over the next 12-18 months.’
The European value add strategy is an Article 8 fund of the Sustainable Finance Disclosure Regulation.
David Pearce, fund manager, real estate, Europe at Nuveen, said: ‘The European real estate market is adapting to major shifts in the macro-economic environment with investors seeking opportunities in an era of rising interest rates and increased costs across the supply chain. As such we have identified an opportunity to deliver new areas of potential value to our investors by sourcing assets that can meet the needs of an evolving world.’
Torbjørn Lange, head of real estate and infrastructure at at Sampension, added: "There is a clear alignment between us as long-term investors and we believe this investment opportunity is a good fit for us, not only because we look for an excellent company that invest in quality real estate, but also because we believe it will offer a good hedge to provide attractive inflation-adjusted returns to our pensioners.’
