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Fidelity’s ‘nil-UK’ Eurozone property fund raises €111m

Property fund graphsA Eurozone property fund offered by Fidelity International has raised €111 million in “just” 12 weeks.

The Fidelity Eurozone Select Real Estate Fund has received commitments from institutions across Europe including from France, Germany, Ireland and Switzerland.

The firm puts the success of the Eurozone property fund down partly to investors shunning UK property.

Investors expect to get a “high quality income from core Eurozone markets”, said the firm, which has £223.7 billion (€263.3 billion) of assets under management.

Property investing currently offers a 200-400 basis points premium to Eurozone government bonds, Fidelity said.

Neil Cable, head of real estate at Fidelity International, said:  “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.”

He added: “Post Brexit, investors have also seen the merits of a core Eurozone strategy with Fidelity's fund being one of the very few core open-ended funds offering nil exposure to the UK and peripheral Europe.”

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