Lend Lease Real Estate Investments, the largest global real estate group, is making a small land grab. The group, with assets under management of $48 billion, launched the Lend Lease European Real Estate Securities Fund with $10 million in seed money.

The new fund will invest in publicly held European Union real estate companies and European emerging markets.

The European fund is Lend Lease's second fund offering ever and is intended to complement their first US-oriented fund. The funds have $22.5 million in assets under management, and additional fund products are in the development pipeline.

"We are considering additional portfolios to invest in the Asia/Pacific marketplace. Other options might include an income orientation twist on a US fund," explained Mark Hoopes, the product manager.

So, why is the real estate provider moving in? "We believe the timing couldn't be better... the outlook for European real estate stocks is solid," said Matthew Banks, the chief executive officer of Lend Lease Real Estate Investments International, in a statement.

But the move also fits into a larger strategy of expansion. "Lend lease is the largest real estate manager globally... and this is just a new distribution channel," elaborated a Lend Lease spokesperson.

Shares of the fund will be available to U.S. retail investors directly and Lend Lease's marketing strategy will pursue the retail market through financial advisors.

"Out of the chute, our main target is the Registered Investment Advisors [distribution] and then other financial intermediaries" said Hoopes. Additionally, Lend Lease will move on the defined contribution market in the future, although specific targeting is not in place.

Sunstone Financial Group provides all back office services except for custody, which UMB will provide.

The subadvisors are W. Joseph Houlihan and Gerios Rovers of Lend Lease Houlihan Rovers, Lend Lease's Brussels-based European real estate securities arm.  

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