UBS Global Asset Management has announced that renewed interest in European real estate vehicles has led to EUR 75 million of new equity being raised in 2010 for its UBS (Lux) Real Estate – Euro Core Fund – Euro Zone (UBS Euro Core, the Fund), an open-ended real estate fund investing in eurozone commercial property.

Several prominent investors, including the Dutch Unilever pension fund “Progress” have sought to invest in well managed, core, European real estate. In 2010, “Progress” made a commitment to the Fund, alongside a number of other European institutional investors. Two other investors have invested between EUR 20-30 million each.

The new inflows reflect interest from both existing as well as new investors seeking to increase their allocation to core real estate funds in Europe. Investors made their commitments via the Fund’s primary and secondary markets and the new capital will enable the Fund to continue its growth. The acquisition of new assets will further improve the diversification within the Fund and the target sectors will initially be retail and logistics in Germany and Finland.

Mark Gifford, Portfolio Manager for UBS Euro Core, said: “After an extensive and detailed client-driven due diligence process, we are delighted to welcome the Dutch Unilever pension fund “Progress” as a new investor to the Fund. We believe that this demonstrates the confidence that investors have in our Fund and in us as Manager and validates our strategy of focusing on core, income producing assets whilst maintaining a low level of leverage before and during the global financial crisis.”