Nuveen Real Estate has completed the first close of its first pan-European debt strategy having secured €150 million in initial commitments.
Nuveen secured the initial capital from several German institutions as well as a commitment from Nuveen’s parent company TIAA.
This debt strategy is Nuveen’s fourth iteration of its European-core-plus debt strategy, but is the first to target opportunities across continental Europe.
Nuveen’s three previous iterations of its European core-plus debt strategy were focused in the UK.
The pan-European strategy, which focuses on whole and mezzanine loans secured on European real estate, is targeting a total capital raise of €500 million.
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.”
He continued: “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.”
This close, and the pan-European strategy expansion, follows the origination of more than €6.5 billion in new loans by Nuveen’s Real Estate Debt Team.
The loans are secured against a wide range of asset classes, including logistics, residential, life sciences and offices.
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