AEW Europe, the pan-European real estate investment manager, has secured a €200 million separate account mandate to invest in commercial real estate across Europe by German pension fund manager ZVK.
The mandate comes at a time of expansion in Germany for AEW Europe, which has just opened a new office in Frankfurt, following the significant growth of the firm's business and the launch of a new German fund management platform last year.
AEW Europe has transacted a total of €750 million in Germany in the last 12 months and bolstered its presence in the market back in March with the hire of Alexander Strassburger. The deal maker joined the firm's investment team from Washington, DC-based private equity firm the Carlyle Group where he was country head of Germany.
“This new investment mandate represents another step forward for AEW Europe as we continue to grow our business in Germany and diversify our European client base. We have seen a significant uplift in our German business activity over the last twelve months and we expect this to be a key growth market for us over the next three to five years,” Rob Wilkinson, chief executive of AEW Europe, commented.
The objective of the ZVK mandate is to provide income returns from a portfolio of assets of which €100 million of investments are already under exclusivity.
ZVK, which manages pension funds on behalf of state employees in Saxony, was advised by HQ Trust in the asset manager selection process for the mandate, which will be structured through a German Spezialfonds.
AEW Europe has €17.3 billion of assets under management, of which €1.2 billion is in Germany.