In addition to its co-mingled fund range, Principal Real Estate Europe manages a number of segregated accounts, where clients generally have specific investment criteria or wish to invest in  larger portfolios on a standalone basis.

Our approach to segregated accounts always begins with the client. By understanding a client’s risk appetite, tax position, approach to leverage and return requirements, we are able to consider the role any investment may play within a client’s portfolio and advise them accordingly.

Once the criteria are set, a strategy is agreed and investments sourced by our pan-European transaction teams. Completed acquisitions are transferred to our specialist asset managers and the portfolio is overseen by an investment manager.

Every key investment decision is subject to the scrutiny of our Investment Committee to ensure best advice to each client, although with segregated accounts, the client may retain control or veto of the transaction decisions.




Mandate Strategy



French Retail Fund Client (1) Exclusive mandate to acquire and manage a first portfolio of core+ German retail assets on behalf of a French SCPI retail fund manager - now fully invested. 62 German retail assets €585m
French Retail Fund Client (1) Follow-on mandate to acquire and manage a second portfolio of core+ German retail assets on behalf of a French SCPI retail fund manager. Portfolio being assembled with a number of assets acquired to date and a strong pipeline. €60m
French Retail Fund Client (2) To manage a portfolio of core/core+ office assets in Europe. Acquired three individual assets in the Netherlands and Italy and a portfolio of German office assets to date, with a pipeline identified for further acquisitions. £245m
UK Corporate Pension Fund Strategy focused on cyclical resilience, designed to perform over a minimum 10-year investment horizon, with a preference for secure income returns and core locations. Two large assets acquired, with a further pipleline portfolio under development. £123m
Brazilian Family Office To provide investment and asset management services in core/core+ retail, office and logistics assets. Acquired and managing two Spanish shopping centres to date. £132m
Sharia Compliant Fund To invest in core and core+ long lease assets across Europe with active asset management opportunities and with a target IRR of 7.5 - 9% and an income return of 6-7%. First acquistion secured in Paris in an OCPI structure with a further pipeline portfolio under development. £83m
German Pension Fund Segregated account, structured as a German regulated Spezialfond, to invest in core office assets in the Cologne region wth secure long-term income streams and limited risk of capital loss. Targeting to invest €100 million, with three assets acquired to date and a strong investment pipeline. £27m
Global Investment Management Client To manage a high-quality portfolio of core+ and value add pan-European logistics assets in established transport hubs. Current portfolio comprises eight geographically diversified logistics assets. £142m
Giles Smith - Head of Fund Management - Biography and contact details

Giles Smith

Head of Fund Management

Principal Real Estate Europe. A Chartered Surveyor with 14 years’ experience in fund management and corporate real estate, Giles began his career with ATIS Real Weatheralls, providing corporate real estate and consulting services for major listed companies such as London Electricity and Barclays. Giles moved on to become Real Estate Corporate Finance Manager at Deloitte & Touche, working on real estate transactions including the sale and leaseback of 41 hotels for the WA Shearings Group (£110m) and the sale of 24 hotel assets for Macdonald Hotels (in excess of £400m); as well as providing structural and strategic advice on real estate investment funds. More recently, Giles became a Fund Manager with GPT Halverton in 2008, and has been a Fund Manager with Principal Real Estate Europe since 2010, responsible for a number of real estate investment funds including HBI Netherlands, Dutch Active Fund, Benelux Industrial Partnership, German Office Fund and Alecta Netherlands.

Phone: +44 (0)20 7355 8800


Principal Real Estate Limited
Phone: +44 (0)20 7355 8800

Risks of Investing in Real Estate Assets:

No assurance can be given that returns will be generated which are commensurate with the risks of investing in the type of investments to be made. Investments in real estate assets are subject to a range of risks that could cause such investments to lose value.  These investments are speculative in nature and the possibility of a loss of the entire amount invested exists.  The possibility of partial or total loss of investment will exist, and prospective investors should not proceed unless they can bear the consequences of such loss.

Economic and regulatory changes that impact the real estate market generally may cause operating results to suffer and decrease the value of investments. Real estate investments will be subject to the risks incident to the ownership and operation of property, including but not limited to any or all of the following: the general economic climate, actual or perceived property values, local property conditions (including the availability of properties relative to demand), vacancies, adverse use of neighbouring real estate, credit risk arising from the financial condition of tenants, buyers, and sellers of properties, geographic or market concentration, inability to obtain any required permits, consents or entitlements for a reasonable cost or on reasonable conditions or within a reasonable timeframe; facts relating to the condition of the property not discovered by due diligence, competition from other areas, government regulations or policies (such as changes in regulations governing land usage, improvements and environmental issues), liability arising out of the presence of certain construction materials, uninsurable losses, any need to defend title, the need to advance capital to protect an investment, fluctuations in interest rates and the risk that the cost of owning real estate may exceed the income produced.

Property has historically experienced fluctuations and cycles in value, and local market conditions may result in reductions in the value of real property and difficulty in assessing value. The marketability and value of real property will depend on many factors, including changes in general or local economic conditions; changes in supply of, or demand for, competing properties in an area; changes in interest rate; the availability of mortgages and related finance; the promulgation and enforcement of governmental regulations relating to land-use; issues relating to environmental protection and occupation safety; which may render the sale of a property difficult; the financial condition of tenants, buyers; changes in land tax rates and operating expenses; and energy and supply shortages.

Real estate investments are generally illiquid and there may be little recognisable market for sale of those investments or by reference to which they can be valued. Further, in light of the illiquidity of the investment, it may be difficult to dispose of the investment at a price similar to the acquisition price. Returns will also be reliant on the skill and judgement of agents and consultants to value and advise on the terms of real estate transactions relating to the investments such as lease negotiations.

Concentration in any one region may arise from time to time. For example, at any given time, certain geographic areas may provide more attractive investment opportunities than others and, as a result, an investor’s portfolio may be concentrated in those areas. The risk that payments on investments could be adversely affected by defaults or the general deterioration of underlying assets is likely to be increased to the extent that the portfolio is concentrated in such a way which, consequently, could have an adverse impact on the value of the investments.

Due diligence on properties may not reveal all conditions that may decrease the value of an investment. Not all circumstances affecting the value of an investment can be ascertained through the due diligence process.  If the materials provided are inaccurate, if the sufficient investigations are not made, or if the due diligence process fails to detect material facts that impact the value determination, an investment may be acquired that results in significant losses.

This website, the distribution of information on it and the offer or placement of interests in any fund managed by Principal Real Estate Limited (“Principal Real Estate”) or any of its affiliates (a “Fund”) may be restricted by law or regulation in certain jurisdictions. This website and the information on it is only directed at persons, and interests in any Fund will only be available for investment, to the extent that it is lawful under all applicable law and regulation to do so in any relevant jurisdiction. This website and the information on it are not addressed to any person resident in any jurisdiction where such distribution would be contrary to local law or regulation. Accordingly, visitors to this website should inform themselves about, and observe, local laws in their own jurisdiction which may restrict their ability to engage the services of Principal Real Estate or any of its affiliates, or to invest in any Fund.

In particular for investors in the European Economic Area (“EEA”), this website and the information on it is only directed at persons who are professional investors for the purposes of the Alternative Investment Fund Managers Directive (2011/61/EU) (“AIFMD”), professional clients or eligible counterparties for the purposes of the Markets in Financial Instruments Directive (Directive 2014/65/EU) (“MiFID II”) or as otherwise defined under applicable local law and regulation and at whom this website and the information on it may lawfully be directed in any relevant jurisdiction (“Eligible Persons”). In relation to each member state of the EEA (“Member State”) which has implemented AIFMD (and for which transitional arrangements are not/ no longer available), this website may only be accessed and interests in Funds may only be offered or placed in a Member State to the extent that: (i) the relevant Fund is permitted to be marketed to professional investors in the relevant Member State in accordance with AIFMD (as implemented into the local law/regulation of the relevant Member State); or (ii) this website and its information may otherwise be lawfully distributed and the interests in Funds may otherwise be lawfully offered or placed in that Member State (including at the initiative of the investor). In relation to each Member State of the EEA which, at the date of accessing this website, has not implemented AIFMD, this information may only be distributed and interests in Funds may only be offered or placed to the extent that this information may be lawfully distributed and the interests in Funds may lawfully be offered or placed in that Member State (including at the initiative of the investor).

In addition in the United Kingdom, this website and the information on it is intended only for, and is directed only at, persons who both (i) are capable of being treated by Principal Real Estate as professional clients or eligible counterparties, as each term is defined in the rules of the FCA, and (ii) fall within an exemption from Section 21 (or, in relation to communications by Principal Real Estate concerning collective investment schemes, Section 238) of the Financial Services and Markets Act 2000 (“FSMA”) in accordance with (a) Article 19 of the FSMA (Financial Promotion) Order 2005 (“FPO”) or Article 14 FSMA 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001 (“CIS Order”), being investment professionals having experience in relation to investments including unregulated funds, (b) Article 49 FPO or Article 22 CIS Order, being certain high net worth companies, trusts and unincorporated associations etc., or (c) being any other class(es) of person in or outside the United Kingdom to whom this website and its contents may otherwise lawfully be communicated. This website and the information on it and the opportunity to invest in the Funds is only available to such persons in the United Kingdom and this website and the information therein must not be relied or acted upon by any other persons. This website is not directed at or intended for U.S. persons and by accessing this website you represent to Principal Real Estate and its affiliates that you are not a U.S. person as defined in Regulation S under the United States Securities Act of 1933, as amended and are not acting on behalf of a U.S. person, nor purchasing with a view to re-sale in the US or to or for the account or benefit of a U.S. person.

Persons who are not Eligible Persons, including but not limited to those individuals or other persons who fall within the FCA’s definition of ‘retail clients’, should not use or rely upon this website or the information contained therein and may not engage the services of Principal Real Estate or any of its affiliates, or invest in any Fund. Potential investors are advised that all or most of the protections provided by the UK regulatory system will not apply and that the UK Financial Services Compensation Scheme may not be available in relation to an investment in a Fund or separate account.

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This website and the information contained therein is not intended to provide the basis of any investment decision relating to Funds, products or services and any potential investor accessing this website should not solely rely on this website in evaluating the virtues of investing in any investments in such Funds, products or services referred to on this website. Any decision by a person to purchase interests in Funds, products or services must only be made following such person having thoroughly read all of the related materials to such investment including the relevant prospectus or offering memorandum for the relevant Fund and any supplements or appendices thereto, which must be received and reviewed prior to a person making any such investment decision. The relevant prospectus or offering memorandum for the relevant Fund may contain different information to the information and opinions contained on this website at any point in time. Any person purchasing an interest in a Fund, product or service referred to on this website must be able to bear the risks involved and must satisfy the relevant suitability requirements relating to such purchase of an interest in a Fund, product or service. Furthermore, some or all investment programs included on the website may not be suitable for certain investors.
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