German insurer targets retail warehouses with TH Real Estate

A German insurance company has awarded a mandate to TH Real Estate to invest in domestic retail warehouse assets.

The unnamed investor has committed an initial €250m of equity and will target core and core-plus, supermarket-anchored retail warehouses.

The separate account has been structured as a 10-year, open-ended Spezialfonds, administered by IntReal.

The first acquisition is expected to be completed by the end of the year. 

The mandate follows the launch of TH Real Estate’s (then TIAA Henderson) Core German Retail Fund in 2014, which invests in core and core-plus German retail, including retail parks, hybrid malls and inner city shopping centres.

TH Real Estate’s German Spezialfonds business was set up in 2011 (then Henderson Global Investors) and now has around €800m in assets under management in three funds and one mandate.

Thilo Wagner, director of investment for Germany at TH Real Estate, will be responsible for managing the new mandate.

“We believe it is an excellent time to invest in retail and anticipate strong prospects for this account,” he said.

”The German retail sector continues to attract interest from a growing number of international investors, who favour retail for its long-term defensive qualities and asset management potential, thereby putting pressure on pricing for the best assets.

”This is supported by improvements in both consumer and retailer sentiment, and modest recovery in the occupational market.”