Nuveen Real Estate has secured €150 million of initial capital at the first close of its fourth debt strategy in the European commercial real estate debt series.
Several German institutional investors have committed to the first close, joined by Nuveen’s parent company, TIAA. The strategy is targeting a total capital raise of €500 million.
Nuveen said this launch represents Nuveen’s first pan-European debt strategy in the series.
The strategy will focus on whole and mezzanine loans secured on European real estate.
”The success of this first close and the expansion to a pan-European strategy follows the origination of over €6.5 billion in new loans by Nuveen Real Estate’s European Debt Team, secured against a wide-range of asset classes including logistics, residential, life sciences and offices,” the company said.
Christian Janssen, Head of Commercial Real Estate Debt, Europe, at Nuveen Real Estate, said: “Since the global financial crisis, the European real estate debt market has changed significantly. The retrenchment of traditional bank lenders and the impact of the coronavirus pandemic has created a significant opportunity for non-bank lenders to enter the European real estate debt market and grow its market share. As such we believe European commercial real estate debt can offer investors attractive risk-adjusted returns relative to fixed income investments and potential down-side risk mitigation.”