Cromwell Property Group and Valad Europe have launched a €2bn (£1.8bn) fund targeting core European cities.
The open-ended Cromwell European Cities Income Fund will target income returns of 5% and total returns of 8% in mainly retail and leisure, industrial and office assets.
It will target 29 cities the company believes will have long-term rental growth potential and liquidity.
Audrey Klein, head of equity at Valad Europe, said: “The historically high yield premium of European commercial property over sovereign debt and corporate bonds currently offers an attractive entry point for institutional investors looking for a long-term total return in excess of 8%.”
The fund has secured commitments from institutional investors including PFA Pension and has bought a €205m seed portfolio of three Dutch assets in Amsterdam, Rotterdam and The Hague.
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