AEW Europe, the Paris-based real estate investment management firm, has launched an investment program focused on German retail assets as part of the expansion of its opportunistic platform.
The firm will initially look to build a €150 million portfolio of assets in lot sizes of €5-15 million, on behalf of a US investor.
AEW Europe will team up with local partner Kintyre, which specializes in the German retail market, to source and structure the investments. Kintyre will take primary responsibility for developing the pipeline of potential investments and, depending on the availability of suitable investment opportunities, the investment capacity of the partnership is expected to be in the region of €300 million.
Contracts have been signed for the first acquisition and a further eight assets are currently under offer.
“This sector represents good value at present with potential upside through asset management and a demonstrable pipeline of deals. Kintyre's local expertise gives us great market coverage in the sector and strong execution capabilities,” commented Russell Jewell, head of private equity funds for AEW Europe.
AEW Europe has nine offices throughout Europe employing more than 270 professionals. The firm has launched a number of private equity real estate funds since 2001 and currently manages more than €18 billion of assets in Europe across a number of funds and separate accounts.