Nuveen’s European Cities vehicle raises €130m from pension funds

Investment manager Nuveen Real Estate has raised €130 mln from three European investors for its European Cities vehicle. All three parties are European pension funds, with two expanding their current commitments to the platform.

Focusing on selected cities across the region, the European Cities vehicle seeks to deliver diversification, income and long-term capital growth for its investors. It targets assets in European ‘future proof’ cities that the firm believes are best positioned for demographic and structural growth.

The vehicle currently owns 13 prime assets across Europe, in major cities such as London, Madrid, Amsterdam and Paris, including a forward-commitment to cube Berlin, a 200,000 sq ft (18,500 m2) office development next to the Hauptbahnhof, which is due to complete later this year.

In 2019, the vehicle’s Kamppi shopping centre in Helsinki welcomed Japanese retailer MUJI, as it opened its largest European store, and its first in Finland, at the centre. Meanwhile, AliExpress, the global retail online marketplace belonging to Chinese retailing giant Alibaba, opened its first, permanent, physical store in Europe at the Xanadú shopping centre in Madrid.

Andrew Rich, fund manager at Nuveen Real Estate, commented: 'The continued commitment from current investors, and interest from new parties, solidifies confidence in the European market for high-quality assets in key gateway cities. Since the launch of the vehicle in 2016, we have assembled a €2 bn portfolio of 13 high-quality assets, including one under development, and have raised €1.3 bn from 24 investors based across the globe. Although we continue to invest in new opportunities, we also extensively manage our existing portfolio to ensure they are providing strong returns for our investors and enjoyable experiences for the users.'

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