Nuveen Real Estate launches European Value-Add strategy

• First iteration of the firm’s diversified pan-European Value-Add strategy
• Initial capital of c. €180 million secured from two separate closes
• Strategy will focus on mispricing, repositioning and development opportunities in line with global megatrends

Nuveen Real Estate, one of the largest investment managers in the world, has completed the first and second close of its first European Value-Add strategy, having secured c. €180 million in initial commitments.

A Danish institutional investor alongside Nuveen’s parent company, TIAA committed to the first close, of c. €100 million. A further c. €75 million committed by Danish pension fund Sampension formed the second close taking the strategy to over halfway to its capital raise target of €300 million, with the hard cap set at €500 million.

This launch represents the first iteration of Nuveen’s diversified European value-add series. The strategy will have a cross-sector outlook and will source opportunities across Europe and the U.K. It has been designed to provide a solution for institutional investors looking to access potential returns through mispricing, repositioning and development opportunities in line with global megatrends. These trends include changes in the macro-economic environment driven by shifts in demographics, sustainability and technology as well as post COVID-19 changes in behaviour.

The firm has a strong track record of finding value-add opportunities in Europe and has over 85 years of experience investing across multiple market cycles with an established investment process.

David Pearce, Fund Manager, Real Estate, Europe at Nuveen, said: “The European real estate market is adapting to major shifts in the macro-economic 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 have the potential to meet the needs of an evolving world. With structural shifts taking place across each sector of the industry, we see significant potential to adapt existing stock to meet the changing demands of the occupier.”