Fidelity International is a privately owned active investment manager with US$1,180bn* client assets, supported by a globally integrated investment platform, proprietary research capabilities and more than 460 investment professionals across 12 investment offices worldwide. The firm’s collaborative investment culture and extensive cross-asset expertise generate differentiated insights that support informed investment decisions across public and private markets.
Fidelity Real Estate is Fidelity International’s European direct real estate investment business. Established in 2006, it manages US$3.3bn* on behalf of more than 100 institutional investors. Investment professionals are located across Europe’s major real estate markets, combining local market expertise with the research, risk management and capital markets capabilities of the wider Fidelity organisation.
The business combines rigorous investment underwriting, active asset management and proprietary research with integrated ESG and climate considerations throughout the investment lifecycle. Over 20 years, Fidelity Real Estate has established a strong track record in core income investing while developing a differentiated climate impact investment capability focused on creating long-term value through decarbonisation and asset repositioning. Alongside its flagship core and climate impact strategies, the business offers co-investment opportunities and bespoke investment solutions, providing investors with access to high-quality assets across Europe’s most liquid real estate markets.
*Data as of 30 June 2026.
Sector forecasts
Industrial
Tailwinds supporting demand for European logistics include increased defence spending, deglobalisation and its impact on trade and tariffs, the ongoing growth in e-commerce, and shortages of supply. Occupiers are seeking assets that deliver efficiency gains, driving demand for higher eaves heights, onsite power generation and strong locations. Assets meeting these requirements are expected to deliver strong rental value growth and attractive returns. Given shortages of supply and power availability, there are opportunities to deliver attractive returns through refurbishment with a focus on sustainable credentials.
Office
Prime offices have delivered strong rental growth in recent years and are expected to continue to do so. However, the definition of prime has become far narrower as occupiers seek the highest sustainability credentials. Flexibility is a growing requirement as the move to hybrid working is exacerbated by uncertainty around the impact of AI on working practices, making the sector more ‘operational’ in character. Successful investment will involve careful management of net operating income and capex requirements. Negative investor sentiment will continue to weigh against the sector.
Residential
The residential sector benefits from several themes that support continued rental growth and should provide resilience from some of the technological and geopolitical uncertainty impacting commercial sectors. However, the sector remains low yielding and requires good asset management and cost control to ensure that it delivers attractive performance, and it remains vulnerable to populist policies around rent control.
Retail
Consumer confidence remains subdued, reflecting persistent economic, geopolitical, and inflation-related uncertainties. Furthermore, discretionary spending is increasingly channelled towards experiences. Consequently, retailers are operating in a difficult environment and remain cautious. However, rents have been rebased and there are attractive opportunities in supply constrained markets offering shoppers convenience or experience and the higher yields available for out-of-town retail are attractive as income return remains a focus.
Other
In an environment of ‘higher for longer’ interest rates, performance is expected to be driven by management of voids and delivering strong rental value growth. We therefore see attractive opportunities in niche sectors offering attractive yields and strong income growth. Outdoor storage, life science, hotels and healthcare are interesting, given alignment with key themes such as de-globalisation, demographics and technological change.
Investment principles & strategy
Developed over two decades and tested across multiple market cycles, Fidelity’s investment approach seeks to identify compelling opportunities supported by long-term structural trends. From targeting assets benefiting from enduring demand drivers within our core strategies to capturing value from the transition to a low-carbon economy through our climate impact strategies, we focus on strong fundamentals and attractive risk-adjusted returns.
Our approach is underpinned by three principles:
- Differentiated research insights:
As part of a global asset management platform, we are able to leverage Fidelity’s global research platform and cross-asset expertise. We combine proprietary insights into occupier industries, supply chains and structural trends with local real estate knowledge, to identify opportunities best positioned for future growth. - Disciplined value investing:
Our rigorous, bottom-up investment process focuses on intrinsic value, income resilience and selective capital deployment. Across core strategies, we target high-quality assets in strong European locations, prioritising sustainable income, occupier covenant strength and opportunities to enhance returns through active management. - Active asset management and value creation:
We pursue asset-level business plans tailored to each strategy’s risk-return objectives. Across all strategies, sustainability considerations are integrated into investment decisions with active asset management, alongside disciplined underwriting and proactive risk management to support long-term value creation. Our climate impact value-add strategies focus on repositioning office and logistics assets through energy-efficiency improvements to improve occupier economics, ultimately driving rental growth, valuation uplift and measurable decarbonisation. A proprietary climate impact framework incorporating 21 metrics supports investment selection, execution and impact measurement.
Strategic corporate development
Fidelity Real Estate’s long-term business strategy is focused on building upon its established European investment platform, delivering high-quality investment solutions and adapting to the evolving needs of investors.
Our strategic development combines the continued evolution of our established core real estate franchise with the development of differentiated investment capabilities. This includes our climate impact platform, launched in 2023, which seeks to capture opportunities arising from the decarbonisation of Europe’s existing building stock and the growing demand for energy-efficient real estate.
Supported by Fidelity International’s broader investment platform, we remain focused on enhancing our investment offering and developing flexible solutions, including bespoke mandates and co-investment opportunities, tailored to clients’ evolving investment objectives and sustainability requirements.
Our ambition is to deliver sustainable, long-term growth while maintaining investment discipline and a consistent focus on client outcomes.
Compliance statement
For professional investors only. This communication is for information purposes only and provides an overview of the investment manager and its capabilities. It does not constitute investment advice, a recommendation, offer or solicitation. All data are as at 30 June 2026, unless otherwise stated. Information may change. Forward-looking statements reflect current expectations; actual outcomes may differ. Fidelity International refers to the group of companies forming the global investment management organisation operating in designated jurisdictions outside North America. This communication is not directed at persons inside the United States. Fidelity, Fidelity International, the Fidelity International logo and F symbol are registered trademarks of FIL Limited.
