German roundup: Real IS, Invesco, Quantum
GERMANY – The Munich-based company Real IS is launching its sixth Spezialfonds as part of its pan-European real estate fund series, attracting fresh capital from German institutional investors, and is now considering a global vehicle investing further afield.
Real IS has secured a total of €200m for its sixth fund, with a spokesman for the company confirming to IPE that the fresh capital came from German institutions only, mainly from the banking sector but also from a few insurers and Pensionskassen.
The new vehicle will primarily target office and retail properties but also invest in logistics assets and budget hotels for diversification purposes.
Real IS said it would target a total of €650m for this vehicle.
The investment manager also stressed that up to 70% of the €650m would be invested in Germany, while 20-40% will be invested in France, and no more than 40% in Benelux.
The firm went on to say that it would consider a similar target investment volume for its next real estate fund and could look at opportunities arising outside the euro-zone.
Jochen Schenk, board member at Real IS, said: “We are talking to potential investors about a product that might invest in the UK, Poland and Australia, in addition to the euro-zone.”
The launch of this sixth Spezialfond comes after the company already secured €500m of capital from German investors for the BGV V fund.
Real IS added a 50% debt share to bring the BGV V fund’s investment target to €750m, of which 80% has already been invested, according to the investment manager.
Meanwhile, Invesco Real Estate has set up its first residential property Spezialfonds together with Master KAG provider Institutional Investment Partners (2ip).
The fund has an “initial target volume” of €250m and is open to German institutions only.
As part of its first investment, the fund acquired the Westside Towers from Revitalis Real Estate.
The project comprises 250 residential units in Munich and also includes retail space of 26,000sqm.
Construction is set to start in the fourth quarter this year.
Finally, the Quantum Immobilien KAG has bought an office building in Düsseldorf for an individual Spezialfonds set up with Universal-Investment as its administrator.
According to Quantum, the Spezialfonds – in which Quantum is acting as a portfolio manager – is pooling the real estate holdings of an unnamed Versorgungswerk.
The fund, which has an investment target of €200m, is investing in inner-city office and retail properties in Germany.