AEW raises €520m for European core real estate fund

AEW raises €520m for European core real estate fund

AEW has increased the equity commitments of the firm’s open-ended pan-European core fund Eurocore to €520 million since its first close in January 2021.

The additional equity has been raised from new and existing investors, and follows the investment program of €427 million of assets that have been secured since the first close.

Eurocore which has outperformed the INREV European OCDE Funds Index to date, aims to capitalise on the changing demand for real estate being brought about by ongoing urbanisation, demographic changes, and the rise of new technologies. The Fund places a strong emphasis on ESG, aligning with the UN’s Sustainable Development Goals and participating in GRESB.

A total of €427 million of capital has so far been allocated across a mix of 11 high quality medical office, logistics and residential assets in six countries, the majority of them having been secured off-market.

Christina Ofschonka, Senior Fund Manager of Eurocore at AEW, commented: “In the time since we launched Eurocore we have efficiently deployed the majority of the initial equity into a high-quality portfolio of carefully selected assets, which offer strong income fundamentals and ESG credentials that meet our long-term KPIs, delivering outperformance against the Fund’s industry benchmark. The new equity we have raised, underpinned by ongoing investor demand for European core real estate, enables us to continue this momentum and take advantage of further opportunities identified through our pan-European network which has successfully sourced transactions off market in the past. We continue to monitor an attractive pipeline of investments as we focus on growing a future-proof and diversified portfolio.”