AEW, the Paris-based private equity real estate investment firm, has secured a €100 million separate account mandate from a major German pension fund to invest in pan-European core assets.
While the pension fund has committed that amount in initial equity, to be invested in a range of commercial and residential real estate, it is understood the investment – and subsequently the portfolio – will be expanded over the next few years.
It is understood that the pension fund is one of AEW’s existing investors from one of its real estate funds.
AEW said the aim of the mandate was to build a sustainable real estate portfolio with an attractive dividend yield for its clients.
“The investment strategy will be focused on investment opportunities in markets that will benefit from growth in tenant and investor demand,” said Marc Langenbach, head of fund management and separate accounts in Germany at AEW.
“With more than €100 million of assets already under exclusivity, we have already made significant progress in building the portfolio. The implementation of this mandate will involve all our local teams across our European platform of 10 offices.”
AEW did not disclose return expectations for the mandate.
In its most recent fundraising activity, AEW raised an additional €290 million for its Europe City Retail Fund in March. The fundraise meant the firm had collected more than €415 million in total, surpassing its original investment target of €400 million. In 2015, the firm also won a €200 million mandate from ZVK for Saxony, a German pension fund, to invest in commercial real estate across Europe.