Real estate investor and manager, Cromwell Property Group (Cromwell) today announced it has received an Alternative Investment Funds Management (AIFM) licence from the Luxembourg regulator. This represents the culmination of a formal application process that started in May 2018.
The licence grants Cromwell the ability to manage alternative investment funds (AIFs) for investors across all European Union (EU) member states, further expanding on Cromwell’s existing United Kingdom AIFM licence.
Cromwell Chief Investment Officer, Rob Percy, said, “Irrespective of the Brexit outcome, the Luxembourg licence ensures Cromwell can continue to meet client demand and offer our fund solutions in any EU country.”
“Europe comprised approximately 40% of total transactions in the global commercial real estate market in 2018. Its sheer size presents a valuable investment opportunity, but its complexity across numerous markets highlights the need for an on-the-ground presence,” Mr Percy commented.
Cromwell’s Italian team recently worked with a Korean capital partner to source, and acquire, the Pirelli R&D Facility in Milan. Located in the Bicocca district in Milan, it is closely situated to a number of other Pirelli facilities and leading global businesses including Philips, ING and Deutsche Bank.
“The new licence was an essential requirement for this transaction,” said Mr Percy.
“Having 200 experienced real estate professionals in 20 local offices throughout 12 different European countries means there are no restrictions to finding the right opportunities to meet the investment requirements of our capital partners anywhere in Europe,” Mr Percy concluded.
European commercial real estate update.
European commercial real estate investment volumes reached €273 billion in 2018, the fourth year in a row they were above €250 billion. Total activity was down slightly on 2017 but investor sentiment remains upbeat as capital continues to look for opportunities across the continent.
Germany’s €66.9 billion of commercial investment surpassed the UK (€61.7 billion) in volume in 2018 and both markets continue to be the main destinations for investment. The Top five is rounded out by France (€31.7 billion), The Netherlands (€20.4 billion) and Spain (€17.9 billion). Sweden, Austria, Poland, Italy and Finland collectively account for €36.2 billion and round out the top ten.