Principal Real Estate Europe, the European real estate investment arm of Principal Global Investors, has launched its first dedicated long-income-focused European real estate fund, targeting an investment volume of more than €800 million ($882 million).
The fund’s investment objective is to provide a total return that will track euro zone CPI plus appropriate real estate risk premiums through investment in long-leased euro zone real estate assets.
The fund’s first acquisition is a temperature-controlled warehouse asset located in North Amsterdam with a weighted average lease term 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 to create a product to meet the needs of European institutional pension fund investors. The fund has been developed to provide institutional investors with access to the relatively underdeveloped long-lease real estate investment fund o
