Real estate asset manager AEW raised €410 million of equity commitments at first close of its Eurocore fund and said it is monitoring a pipeline of assets worth €500 million.
Eurocore is an open-ended pan-European core fund. AEW said that investors committing to the Fund include Netherlands-based Pensioenfonds Metaal en Techniek, advised by MN, as well as “a large Swiss public pension fund”, other insurers, pension funds, family offices and corporates from France, Germany and Japan.
AEW said in a statement that Eurocore will aim to provide stable, long-term income returns by “investing in a future-proof diversified portfolio of core office, logistics and residential assets.”
Aiming to meet changing demand for property
It said the fund will target investments that meet the changing demand for real estate being brought about by ongoing urbanisation, demographic changes and new technologies.
The Fund will focus on major cities in France, Germany and the Benelux countries.
Eurocore will also have a strong emphasis on ESG, investing in certified assets with good energy efficiency levels, as well as creating sustainable environments. In Europe, AEW manages over €33 billion of assets, with €27 billion in core assets.
“AEW is now one of the few firms that is able to offer investors access to open-ended diversified fund strategies across the US, Europe and Asia,” said Rob Wilkinson, CEO Europe at AEW.
“Megatrends are disrupting our sector and are leading to changing requirements for real estate,” AEW’s Christina Ofschonka, senior fund manager of Eurocore said. “Our strategy is designed to reflect these market changes, whether that is logistics supply chains becoming more localised; changing requirements for residential space; or workspaces evolving to enhance flexibility, collaboration and innovation.”