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Press Releases 2019

Principal announces launch of first dedicated long income focused European real estate fund and acquisition of first property asset

NEWS, 2019

Principal Real Estate Europe (“Principal”), the European real estate investment arm of Principal Global Investors, announces the launch of its first dedicated long income focused European real estate fund (the “Fund”),

With a target investment volume in excess of €800 million over the first five years of its life, the Fund’s investment objective is to provide a total return that will track Eurozone CPI plus appropriate real estate risk premia through investment in long leased Eurozone real estate assets.

The Fund’s first acquisition is a temperature-controlled warehouse asset located in North Amsterdam with a WALT of 20.5 years. The main tenant of the building is the Eye Film Museum.

 

The Fund investment strategy has been co-designed with Willis Towers Watson (“WTW”) in order to create a product that is especially suited to meet the needs of European institutional pension fund investors while simultaneously benefitting from the market knowledge and on-the-ground asset management and transactional experience of Principal. The Fund will access long dated inflation linked income streams backed by investment grade credit at a time when real estate provides an attractive spread against other asset classes.

The Fund has been developed to provide institutional investors with access to the relatively underdeveloped long lease real estate investment fund offering in Europe, translating a strategy that has proved highly attractive to institutional investors in the UK into Continental European markets. The Fund will seek to take advantage of the relative scale of the European real estate market, using Principal’s experienced team of property investment professionals located on the ground throughout European markets to source appropriate acquisition opportunities. The fund can acquire all types of commercial real estate with leases of at least 14 years fixed term, located throughout the Euro area, with a weighting towards Germany, Benelux and France.

Robert Leadbetter, Fund Manager at Principal Real Estate Europe, said, “This is an exciting time to be entering the European long lease real estate fund market. There remain relatively few competing products dedicated to the acquisition and management of long dated real estate assets in Europe, although this type of investment vehicle is increasingly in demand from investors both as a hedge against inflation and as a higher yielding alternative to bonds of equivalent credit strength.”

Commenting on the Fund’s first acquisition, he added: “Our first acquisition demonstrates not only that there are high quality long term income opportunities in Europe, but that with this new Fund Principal is well placed to source and execute such transactions.”

 

Principal contact for further information:

  Robert Leadbetter

Principal Real Estate Europe
+44 (0) 20 7355 8800

leadbetter.robert@principalreeurope.com

Principal PR contact for further information:

James Verstringhe,

Tavistock
T +44 (0)20 79203150

james.verstringhe@tavistock.co.uk

Notes for editors:

Principal Real Estate Europe
Principal Real Estate Europe is part of Principal Financial Group’s dedicated real estate business, Principal Real Estate Investors, which manages or sub-advises $85.7 billion in real estate assets globally (as of September 30, 2019).

The group’s real estate capabilities cover all four quadrants encompassing public and private, equity and debt investment solutions.

In Europe, Principal Real Estate Europe operates from offices in London, Frankfurt, Amsterdam, Paris, Lisbon, Luxembourg, Madrid and Milan, employing more than 100 staff who manage real estate across all asset classes in nine different countries.

Principal Global Investors
Principal Global Investors® leads global asset management at Principal®. As a multi-boutique firm, we bring a focused perspective and offer expertise across a host of asset classes.

At our core, we are driven by our purpose to help investors and businesses achieve their financial goals. Our global investment professionals deliver investment solutions for public and private pension funds, foundations and endowments, central banks, insurance companies, sub-advisory arrangements, sovereign wealth funds and individual portfolios.

Principal Global Investors manages approximately $459.3 billion in assets on behalf of over 800 institutional clients located in over 80 countries as well as retirement plans and individual clients, reflecting our worldwide market reach and experience and our commitment to high-quality research and service (as of September 30, 2019).

To find out more, visit us at principalglobal.com.

Willis Towers Watson

Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has over 40,000 employees serving more than 140 countries. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.

 

 

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