Commercial Property Investment Europe:
The Fidelity and its investors in the Eurozone Select Real Estate Fund demonstrate confidence in the commercial property markets of continental of Europe, as it has raised more than €150m (£132m) from European investors thus far in 2017 and is looking to raise more later this year.
Interest is coming from European institutional investors looking for income opportunities, and Fidelity have so far committed to five assets totalling €129m: two DIY retail stores in Germany, and a logistics asset in Greater Paris and in Germany.
The purchase initial yields have been in the range of 6% to 7%, reflecting the fund’s current preference for assets in the secondary non-prime markets of Germany, France and Benelux countries.
Neil Cable, head of real estate at Fidelity International told Property Week:
“Fidelity’s focus on high quality income from institutional grade real estate in the core Eurozone markets has resonated with investors seeking alternatives sources of investment grade income. Appetite has primarily come from France, Ireland,” he said.