Nuveen Real Estate has secured around €180m (£160m) in commitments for its first pan-European diversified value-add strategy, which focuses on cross-sector opportunities across the UK and the continent.
The strategy’s initial focus is on mispricing and repositioning opportunities in urban logistics, housing and alternatives.
Danish pension fund Sampension has agreed to invest €75m, while a Danish institutional investor and Nuveen’s parent company, TIAA, have committed around €50m each.
The amount takes the strategy more than halfway towards its capital raise target of €300m, which it will continue fundraising for during 2023.
David Pearce, fund manager for real estate in Europe at Nuveen, said: “The European real estate market is adapting to major shifts in the macroeconomic 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, said: “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 invests 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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