Nuveen Real Estate has reached a first close on its latest debt strategy – its first to target continental Europe.
The investment manager has secured €150m (£127.7m) from German institutional investors and TIAA, its parent company.
The strategy is the firm’s fourth core-plus debt strategy and will focus on whole and mezzanine loans secured on European real estate. While the three previous iterations have focused solely on the UK, this is Europe-wide.
Christian Janssen, head of commercial real estate debt for Europe at Nuveen Real Estate, said: “Since the global financial crisis, the European real estate debt market has changed significantly. The retrenchment of traditional bank lenders and the impact of the coronavirus pandemic has created a significant opportunity for non-bank lenders to enter the European real estate debt market and grow its market share.
“As such we believe European commercial real estate debt can offer investors attractive risk-adjusted returns relative to fixed income investments and potential down-side risk mitigation.”
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