Nuveen Real Estate has launched its first dedicated pan-European diversified value add strategy, having secured around €180m in initial commitments.
Nuveen’s parent company TIAA and a Danish institutional investor have each committed circa €50m each and a further circa €75m has been committed by Danish pension fund Sampension taking the strategy more than halfway towards its capital raise target of €300m.
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.
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 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.”
