European real estate asset and investment manager AEW Europe is to launch a pan-European €500 mln value-add fund within the next 18 months, according to someone familiar with the company.
The fund is expected to focus on office, retail and industrial properties in Europe. LTVs are expected to be in the 60% range.
Given the strong interest in value-add properties, European, US and Asian investors are likely to invest in the fund, market sources told PropertyEU at MIPIM.
In addition, AEW Europe is expected to launch a residential fund later this year, targeting a wide-range of assets, including senior housing, student accommodation and development opportunities. The fund will likely be between €300 mln and €500 mln. AEW is believed to be mulling whether the fund should focus on France or have a pan-European focus. AEW was not available for comment.
In September, the fund manager started to market its €750 mln European debt fund, Self 2, which will primarily underwrite office loans in key European markets. The first closing is expected to take place around the end of March, with the aim of raising between €150 mln and €200 mln.
AEW invested slightly above €4 bn in real estate across Europe last year, broadly double what it invested the year before. This year, it plans to invest at least €3 bn, its CEO Rob Wilksinson told PropertyEU earlier this year.
Source: Property EU