Principal Real Estate acquires Amsterdam warehouse (NL)

Principal Real Estate makes debut acquisition for €800m fund (NL)

Principal Real Estate Europe has launched its first dedicated long income-focused European real estate fund. With a target investment volume in excess of €800m 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 purchase price was not disclosed.

 

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. 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.”

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