AEW launches Eurocore fund with €410m first close

AEW launches Eurocore fund with €410m first close

AEW has announced the first close for Eurocore fund, the firm’s new open-ended pan-European core fund, closing on €410 million of equity commitments during the current pandemic.

Investors that have committed to the fund include Dutch pension fund Pensioenfonds Metaal en Techniek, advised by MN, alongside a large Swiss public pension fund and other insurers, pension funds, family offices and corporates from France, Germany and Japan.

Eurocore fund will aim to provide stable, long term income returns by investing in a future-proof diversified portfolio of core office, logistics and residential assets.  The fund will target investments that meet the changing demand for real estate being brought about by ongoing urbanization, demographic changes and the rise of new technologies. The Fund will primarily focus on mature and growing markets in Europe’s major cities including in France, Germany and BeNeLux.

Rob Wilkinson, CEO Europe at AEW, commented: “The launch of Eurocore is a further demonstration of our commitment to long term investing in Europe and we have deliberately designed the investment strategy of the Fund to anticipate the future of real estate markets.  AEW is now one of the few firms that is able to offer investors access to open-ended diversified fund strategies across the US, Europe and Asia.”

Christina Ofschonka, Senior Fund Manager of EUROCORE at AEW, added: “Megatrends are disrupting our sector and are leading to changing requirements for real estate. The Fund will focus on the logistics, residential and office sectors and our strategy is designed to reflect these market changes, whether that is logistics supply chains becoming more localised; changing requirements for residential space; or workspaces evolving to enhance flexibility, collaboration and innovation. 

“Our efforts to deploy capital have begun in earnest and we are already in exclusivity on a number of exciting assets across several European markets, with signing due to occur imminently on the initial acquisitions. We are monitoring a healthy pipeline of investments totalling almost €500 million, as we look to grow the Fund’s portfolio of future proof assets.”