PGGM confirms A$350m commitment

The Zeist-based fund manager has backed an open-ended core Australian property vehicle.

Institution: PGGM
Headquarters: Zeist, Netherlands
AUM: €266 billion
Allocation to alternatives: 22%

PGGM has approved a commitment of A$350 million (US$269.5 million; €192.7 million) to EG‘s open-ended Australian Core Enhanced fund, according to a press release on the fund manager’s website.

The ACE fund has raised A$1.25 billion since its launch in July 2019. As of April 2021, the Sydney-based fund manager has deployed A$234 million in the acquisition of five property assets. The fund will continue to target light industrial and logistics property across Sydney and Brisbane.

Earlier this month, PGGM awarded a mandate to Singaporean firm Keppel Capital in an attempt to further explore commercial real estate investments across Asia-Pacific.

PGGM currently allocates 12 percent of its investment portfolio to real estate.

As illustrated below, the €266 billion pension fund’s recent real estate commitments have predominantly targeted core, core-plus and value-add opportunities across Europe and Asia-Pacific.

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