Fidelity International has partnered with NCB Capital, Saudi Arabia’s leading investment bank and largest asset manager, to launch a bespoke real estate mandate with total investment firepower of $300m (£240m).
The pan-European mandate will target core and core-plus assets across Germany, France, Benelux and the UK. The vehicle provides $150m of equity which can be leveraged to invest up to $300m in total.
The bespoke offering is focused on lot sizes of between $20m-$60m in the office, logistics and retail sectors, and is shariah compliant.
Appetite from the Middle East for the UK and core Eurozone is an ongoing trend with monies from this region constituting a major source of capital, with an annual average of €5.1bn (£4.3bn) invested 2014-2016.
Adrian Benedict, investment director real estate at Fidelity International, said: “In the current climate, real estate has come into its own as institutions look for income and, in recent years, appetite from Middle Eastern investors has begun to increase.
“Developing a strategy and flexible structure to meet the needs of NCB Capital’s client base has been at the heart of this project. With strong competition for core, yielding assets, our intention is to focus on opportunities with active income management potential across the key economic regions of Europe.”
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