PGIM Real Estate has launched the European Core Diversified Property fund (EuroCore). The first closing of the open-ended real estate fund was completed and has raised €304m capital from six institutional investors.
EuroCore invests in predominantly defensive core strategies in European metropolitan regions. The focus is mainly on Germany and France. The fund's investment strategy is broad diversification across all sectors and overweighting residential real estate.
The seed portfolio currently includes five office and logistics properties in France and Germany, which are representative of the fund's focus on sustainable returns and value creation through growth in operating income.
Raimondo Amabile, head of Europe for PGIM Real Estate said: "Europe still offers attractive investment opportunities - especially in office markets with a low vacancy rate and in logistics real estate with short-term growth potential. Also housing markets generate growth while stabilising the portfolio."
Thomas Kallenbrunnen, senior portfolio manager for PGIM Real Estate's European core strategy, added, "By consistently applying our transparent and defensive global investment philosophy to the European market, we aim for long-term outperformance with low volatility and cash flow diversification."
EuroCore will become part of the newly created Inrev-ODCE universe and PGIM Real Estate aims to contribute substantially to this transparency initiative in the European core real estate market.