PGGM Private Real Estate, part of PGGM, the cooperative Dutch pension fund service provider, and Redevco, the property investment management company that is part of Cofra Holding AG, have launched a joint venture investing €550m into European commercial property.
The Urban Retail Ventures business will invest in shopping and leisure properties across the region, with particular focus on cities that are seen as offering ‘quality’ locations.
Investment decisions rely on use of Redevco’s proprietary City Attractiveness research model and the investment capabilities of the PGGM Private Real Estate team. The venture has been seeded with the acquisition of Promenade Sainte-Catherine, a property scheme in central Bordeaux. The City Attractiveness modeling ranks 825 European cities in 25 countries according to so-called ‘soft factors’ that are understood to create a ‘social buzz’ around locations, above and beyond fundamentals such as market, economic and population metrics.
The venture also is committed to a zero carbon portfolio by 2030.
Urban Retail Ventures is Redevco’s third European property joint venture, following previous ones initiated with UK manager Hermes and US private equity player Ares.
PGGM is one of the largest providers of pension services in the Dutch market, with some €218bn of assets under management, and overseeing administration of pensions for some 3 million scheme members.