Investment manager Nuveen Real Estate has launched what it calls its ‘first dedicated pan-European diversified value add strategy’.
The firm said that it has already secured around €180m in initial commitments. A Danish institutional investor and Nuveen’s parent company, TIAA, committed around €50m each while a further amount of around €75m was committed by Danish pension fund Sampension, taking the strategy over halfway towards its capital raise target of €300m, which it will continue fundraising for during 2023.
David Pearce, fund manager for European real estate 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.”
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. 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. The firm said that this represents a unique opportunity set for the deployment of the strategy’s capital over the next 12 to 18 months.
The European Value Add strategy discloses under Article 8 of the Sustainable Finance Disclosure Regulation.