Nuveen Real Estate, one of the largest investment managers in the world, has launched its first dedicated pan-European diversified Value Add strategy, having secured c. €180 million in initial commitments.
A Danish institutional investor and Nuveen’s parent company, TIAA committed c. €50 million each while a further c. €75 million was committed by Danish pension fund Sampension taking the strategy over halfway towards its capital raise target of €300 million, which it will continue fundraising during 2023.
The strategy will have a cross-sector outlook and will source opportunities across Europe and the U.K. 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. 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 discloses under Article 8 of the Sustainable Finance Disclosure Regulation and will build on a strong track record of finding value add opportunities in Europe, with over 85 years of experience investing across multiple market cycles and an established investment process.
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: “We’re delighted to have this opportunity to invest in Nuveen’s European value add strategy. Nuveen has a well-run European investment and asset management platform with a long history and a good corporate reputation. In addition, 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.”
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